Back in 1947, when Pakistan came into being, the value of 1 US dollar was only Rs. 3.31. Yes, you read that right! That was the official exchange rate, and it stayed quite stable in the early years. The country was following a fixed rate system tied to the British pound, and Pakistan’s economy was much simpler and smaller. Everything from groceries to gold was affordable, and people had strong purchasing power.
Why the Dollar Started Climbing
As the years passed, the global and local economic scene shifted. In 1971, after the separation of East Pakistan (now Bangladesh), Pakistan faced a currency crisis. By 1972, the value of 1 USD rose sharply to Rs. 11.01 due to devaluation. This marked the beginning of a long trend of the rupee losing its strength against the dollar. The reasons? Trade deficits, increasing imports, political turmoil, and rising debt.
Big Shifts in the 80s and 90s
Throughout the 1980s and 90s, Pakistan’s economy continued to struggle. Inflation was high, external borrowing increased, and foreign reserves were low. The dollar rose steadily — reaching Rs. 60 by the late 90s. Every new government promised reform, but the rupee kept falling. Corruption and weak policies played a major role in this downfall.
Also Read: Today’s Gold Price in Pakistan – 30 May 2025 (Updated Rates)
The 2000s to Today: From Rs. 60 to Nearly Rs. 280
In the 2000s, things didn’t get much better. Terrorism, political changes, global recessions, and financial instability all pushed the dollar even higher. By 2008, it was Rs. 81. By 2022, it had crossed Rs. 225. And in 2024, it reached a staggering Rs. 279. This means the rupee has lost over 98% of its value since 1947. That’s a historical low — and a sign of deep-rooted economic issues.
What the Numbers Really Mean
This historic rise of the dollar against the PKR isn’t just about currency — it tells the story of Pakistan’s economic ups and downs. A strong economy leads to a strong currency. But decades of poor governance, rising inflation, and foreign debt have taken a toll. Looking back from 1947 to 2024, the numbers tell a powerful story — a journey from strength to struggle.
