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Pakistani rupee
| Pakistani rupee | |||||
|---|---|---|---|---|---|
| |||||
| ISO 4217 | |||||
| Code | PKR | ||||
| Number | 586 | ||||
| Exponent | 5 | ||||
| Denominations | |||||
| Subunit | |||||
| 1⁄100 | Paisa | ||||
| Symbol | ₨/ | ||||
| Nickname | Rupayya. | ||||
| Banknotes | |||||
| Freq. used | ₨ 10, ₨ 20, ₨ 50, ₨ 100, ₨ 500, ₨ 1000 | ||||
| Rarely used | ₨ 5000 | ||||
| Coins | |||||
| Freq. used | ₨ 1, ₨ 2, ₨ 5, ₨ 10 | ||||
| Rarely used | ₨ 20 | ||||
| Demographics | |||||
| Official user(s) |  Pakistan | ||||
| Unofficial user(s) |  Afghanistan[1][2] | ||||
| Issuance | |||||
| Central bank | State Bank of Pakistan | ||||
| Website | www | ||||
| Printer | Pakistan Security Printing Corporation | ||||
| Mint | Pakistan Mint | ||||
| Valuation | |||||
| Inflation | 9.4% (March 2019) | ||||
The Pakistani Rupee (sign: ₨;/ ; code: PKR) serves as the recognised currency of Pakistan. The State Bank of Pakistan is responsible for issuing this currency. The Government of Pakistan officially adopted the rupee in 1949. Prior to this, the Reserve Bank of India managed the issuance of coins and notes until they were transferred to the Pakistani authorities in 1949.
In Pakistan, when dealing with large amounts of rupees, values are typically expressed in terms like thousands, lakh/lac (which represents a hundred thousand), crore (equal to ten million), arab (or one billion), and kharab (which stands for a hundred billion). Additionally, even within this system, numbers continue to be grouped in thousands.
History[edit]
The term rupiyā[lower-alpha 1] comes from the Sanskrit word rūpya,[lower-alpha 2] which originally meant "wrought silver" or "a silver coin." This adjective is linked to the noun rūpa, meaning "shape" or "likeness," which eventually led to the specific meaning of "coin." The word was used for the currency introduced by Sher Shah Suri during his rule from 1540 to 1545 CE.
On 14 August 1947, the Pakistan (Monetary System and Reserve Bank) Order was issued by the Governor General of pre-partition British India, following recommendations from an expert committee. This order appointed the Reserve Bank of India (RBI) as the temporary monetary authority for both dominion of India and dominion of Pakistan until 30 September 1948. During this time, currency notes issued by the RBI and the Government of India remained valid in Pakistan. Additionally, starting 1 April 1948, these notes could include inscriptions from the Government of Pakistan in both Urdu and English. Similar to the Indian rupee, the currency was initially divided into 16 annas, each consisting of 4 pice or 12 pie.
Following the partition, currency issued by the Reserve Bank of India (RBI) and the Government of India remained in circulation in Pakistan for the first seven months. During this time, modified RBI notes in denominations of 2, 5, 10, and 100 rupees were introduced, along with 1-rupee notes from the Government of India. These modifications included the inscriptions "Government of Pakistan" in English and "Hakumat-e-Pakistan" in Urdu on the front of the notes.
In early 1948, an agreement between India and Pakistan led to an amendment of the Pakistan (Monetary System and Reserve Bank) Order of 1947, which advanced the deadline for the RBI's authority as Pakistan's monetary authority from 30 September 1948 to 30 June 1948. At the same time, the arrangement that allowed the RBI to supply inscribed Indian notes to Pakistan was terminated.
In January 1961, the currency underwent decimalisation, with the rupee being divided into 100 pice, which were later renamed paise (singular paisa). However, since 1994, no coins in paise have been issued.
After Bangladesh gained independence in 1972, it introduced the taka, initially set at parity with the Pakistani rupee. Subsequently, the Pakistani rupee was no longer considered legal tender in Bangladesh.
Banknotes[edit]
On 1 April 1948, provisional currency notes were issued by the Reserve Bank of India and the Government of India on behalf of the Government of Pakistan. These notes were intended exclusively for use within Pakistan and could not be redeemed in India. They were printed by the India Security Press in Nasik and featured Indian note plates that were engraved—not overprinted—with the words "GOVERNMENT OF PAKISTAN" in English and "Hukumat-e-PAKISTAN" in Urdu, added at the top and bottom of the watermark area on the front. The signatures on these notes remained those of Indian banking and finance officials. Additionally, various denominations were manufactured for Pakistan by the UK's Thomas De La Rue and Company, along with Bradbury Wilkinson and Company.
In 1949, the Pakistani government established the Pakistan Security Printing Corporation (PSPC), a national security printing facility. This venture was a partnership between Thomas De La Rue & Co. Ltd., which held a 40% stake, and the Pakistani Government, which owned 60%. The initial capital for the PSPC was set at 7.5 million rupees. The foundation for the facility was laid in Karachi by the Governor General of Pakistan on 11 March 1949.
When selecting a printing method, the PSPC opted for the intaglio process instead of lithography, primarily due to concerns about counterfeiting and regional security issues with India. This decision underscored their commitment to employing a higher-security printing technique.
Regular government-issued banknotes in Pakistan began in 1948, with denominations of Re. 1, Rs. 5, Rs. 10, and Rs. 100. The government kept issuing Re. 1 notes until the 1980s. However, in 1953, the responsibility for issuing banknotes shifted to the State Bank of Pakistan, which then introduced Rs. 2, Rs. 5, Rs. 10, and Rs. 100 notes. Notably, only a small number of Rs. 2 notes were produced at that time.
In 1957, Rs. 50 notes were added to the currency, and Rs. 2 notes made a comeback in 1985. The year 1986 saw the introduction of Rs. 500 notes, followed by Rs. 1,000 notes the following year. The Rs. 2 and Rs. 5 notes were eventually replaced by coins in 1998 and 2002, respectively. In 2005, Rs. 20 notes were introduced, and Rs. 5,000 notes came into circulation in 2006.
It’s important to note that until 1971, Pakistani banknotes were bilingual, featuring both Urdu and Bengali text, as Bengali was the state language of East Pakistan, now known as Bangladesh, where the currency was referred to as taka.
In the fiscal year 1952-53, the Pakistan Security Printing Corporation (PSPC) began issuing its own 1- and 5-rupee notes. These new notes were similar to those made earlier by Thomas de la Rue & Company, but the 1-rupee note featured a significant change: it had a blue back without any under-print, unlike the purple back seen in the British versions. This redesigned note was put into circulation on 31 January 1953.
On 14 December 1963, the State Bank of Pakistan started running its own printing press, eventually taking full control of national banknote production. Later, the 1-rupee note was updated again to include a purple back with pink and blue under-print, resembling the earlier De La Rue design. Variations of the 1-rupee note can be distinguished by differences in the font used for the serial numbers and the styles of the signatures.
Since July 1953, the Pakistan Security Printing Corporation (PSPC) had been printing lower denomination notes. However, the third series of the 100-rupee note, which was released in September 1953, was initially produced by Thomas De La Rue in the UK. Later, the PSPC took over the production of these notes, and the change in the printing source can be recognised by variations in the serial number font.
Looking ahead to 2024, Pakistan plans to introduce new banknotes across all denominations. These new notes will feature different colors, unique serial numbers, and enhanced designs with "high security features." The transition to these new banknotes will be gradual rather than sudden. The State Bank of Pakistan intends to launch a new polymer plastic currency note later this year and will also redesign existing banknotes to improve security and incorporate hologram features.
Governor Ahmed confirmed that the redesign will include Rs 10, 50, 100, 500, 1,000, and 5,000 notes. He also assured that there are no plans to eliminate the Rs 5,000 note, despite some Senate committee members, including Mohsin Aziz, suggesting that high-denomination notes could facilitate corruption. If the new polymer currency is well-received by the public, it may lead to the introduction of plastic notes in other denominations as well.
Notes[edit]
References[edit]
- ↑ Hanifi, Shah (2011-02-11). Connecting Histories in Afghanistan: Market Relations and State Formation on a Colonial Frontier. Stanford University Press. p. 171. ISBN 9780804777773.
- ↑ Munoz, Arturo. U.S. Military Information Operations in Afghanistan: Effectiveness of Psychological Operations 2001-2010. Rand Corporation. p. 72. ISBN 9780833051561.
