Update File of Money & Banking

8/8/2019 Update File of Money & Banking

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History & Advent

OfPak Rupee

Group No: 6


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HISTORYANDADVENTEOF PAKRUPEE

WHATISTHE PAKISTANIRUPEE (PKR)?

The official currency of Pakistan is the rupee (PKR). One rupee consists of 100 paise(singular = paisa). When Pakistan began printing its own currency in 1948, they usedIndian currency with "Pakistan" stamped on it for the first few months until enough of thePakistani notes were in circulation. Until 1961, the rupee was divided into 16 Annasbefore being changed to 100 paise. From the time of the rupee's introduction until theturn of the 21 st century, it steadily declined in value against the U.S. dollar. Then,Pakistan's large current-account surplus drove up the value of the rupee until thegovernment lowered interest rates and bought dollars to stabilize the currencies value andmaintain its export competitiveness. Sovereign credit ratings play an important part in

determining a country's access to international capital markets, and the terms of thataccess. Sovereign ratings help to foster dramatic growth, stability, and efficiency ofinternational and domestic markets.

WHATDOESITLOOKLIKE?

KEY ECONOMIC FACTORS

Pakistan has had a difficult time economically and politically over the past decade. TheIMF has established several reform and economic adjustment programs for the country,but domestic political weakness and division have made effective reform elusive. Whileaverage annual GDP growth has hovered around four percent, Pakistan's potential


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growth rate is probably closer to six percent if it could achieve macroeconomic and political stability. Poor tax collection and administration infrastructure kept thegovernment budget perpetually in deficit and limited the public sector's ability to fundinfrastructure development and basic social services. And, defense spending absorbed ahigh share of government resources that were available. The major turning point in

Pakistan's fortunes regarding international assistance came in the last quarter of 2001when the US-led war on terrorism fought its first battle in neighboring Afghanistan. TheMusharraf government elected, at no little domestic political risk to its future, tocooperate with the United States and was fortunate to have the first major phase of thewar next door end with a new Afghan government it can live and work with and with thegratitude of the United States well-earned. Prospects for aid and debt relief are muchimproved and progress is already being made that will reduce Pakistan's internationaldebt burden. Although agriculture is declining as a percentage of total output, this sectorremains the primary economic activity in Pakistan. Cotton, wheat, rice and sugarcane arethe primary crops, which benefit from an extensive irrigation system. The annual cottoncrop is of particular importance as it provides the input to the textile and garment

industry, which is the nation's dominant export industry. Pakistan is attempting toincrease its information technology sector, but only three percent of the populace hastelephones at home. Having achieved a degree of self-sufficiency in the armamentssector, Pakistan is now promoting arms sales as a means of generating more diversifiedexport revenue.

PAKISTANIRUPEE

Pakistani Rupee

1000-rupee note Coins of various denominations

ISO 4217 Code PKR

User(s) Pakistan

Inflation 34.8%

Source Federal Bureau of Statistics, April 2009

Subunit

1/100 paisa (not used)

Symbol R.s.

Coins

Freq. used 1, 2, 5 rupees

Banknotes
http://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Inflationhttp://www.statpak.gov.pk/depts/fbs/statistics/price_statistics/monthly_price_indices/mpi8/cpi_details.pdfhttp://en.wikipedia.org/wiki/Paisahttp://en.wikipedia.org/wiki/Currency_signhttp://en.wikipedia.org/wiki/Modern_Indian_coinshttp://en.wikipedia.org/wiki/File:Coins_of_Pakistan.JPGhttp://en.wikipedia.org/wiki/File:1000_rupees_obverse.jpghttp://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Inflationhttp://www.statpak.gov.pk/depts/fbs/statistics/price_statistics/monthly_price_indices/mpi8/cpi_details.pdfhttp://en.wikipedia.org/wiki/Paisahttp://en.wikipedia.org/wiki/Currency_signhttp://en.wikipedia.org/wiki/Modern_Indian_coins


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Freq. used 5, 10, 20, 50, 100, 500, 1000, 5000 rupees

Central bank State Bank of Pakistan

Website www.sbp.org.pk

The rupee (sign: Rs; code: PKR) is the currency of Pakistan. The issuance of thecurrency is controlled by the State Bank of Pakistan, the central bank of the country. Themost commonly used symbol for the rupee is Rs, used on receipts when purchasinggoods and services. In Pakistan, the rupee is referred to as the "rupees", "rupaya" or"rupaye". As standard in Pakistani English, large values of rupees are counted in terms ofthousands, lakh (100 thousand, in digits 1,00,000) and crore (10 million, in digits1,00,00,000).

HISTORY

The origin of the word "rupee" is found in the Sanskrit word rup or rp, which means"silver" in many Indo-Aryan languages. The Sanskrit word rupyakam means coin ofsilver. The derivative word Rpaya was used to denote the coin introduced by Sher ShahSuri during his reign from 1540 to 1545 CE.

The Pakistani rupee was put into circulation after the country became independent fromthe British Rule in 1947. For the first few months of independence, Pakistan used Indiancoins and notes with "Pakistan" stamped on them. New coins and banknotes were issuedin 1948. Like the Indian rupee, it was originally divided into 16 annas ), each of 4 pice)or 12 pie . The currency was decimalised on 1 January 1961, with the rupee subdividedinto 100 pice, renamed (in English)paise (singularpaisa) later the same year. However,

coins denominated in paise have not been issued since 1994.

COINS

In 1948, coins were introduced in denominations of 1 pice, , 1 and 2 annas, , and 1rupee. 1 pie coins were added in 1951. In 1961, coins for 1, 5 and 10 pice were issued,followed later the same year by 1 paisa, 5 and 10 paise coins. In 1963, 10 and 25 paisecoins were introduced, followed by 2 paise the next year. 1 rupee coins were reintroducedin 1979, followed by 2 rupees in 1998 and 5 rupees in 2002. 2 paise coins were lastminted in 1976, with 1 paisa coins ceasing production in 1979. The 5, 10, 25 and 50 paise

all ceased production in 1994. There are two variations of 2 rupee coins; most haveclouds above the Badshahi Masjid but many don't have. This is noted by very few people.The one and two rupee coins were changed to aluminium in 2007

Currently Circulating Coins

Depiction

(Front)

Depiction

(Back)Value

Year in

UseComposition

Front

IllustrationBack Illustration
http://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://www.sbp.org.pk/http://en.wikipedia.org/wiki/Currency_signhttp://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Pakistani_Englishhttp://en.wikipedia.org/wiki/Lakhhttp://en.wikipedia.org/wiki/Indian_numbering_systemhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Sanskrithttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Indo-Aryan_languageshttp://en.wikipedia.org/wiki/Sher_Shah_Surihttp://en.wikipedia.org/wiki/Sher_Shah_Surihttp://en.wikipedia.org/wiki/Common_Erahttp://en.wikipedia.org/wiki/British_Rulehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Paisehttp://en.wikipedia.org/wiki/Paisahttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://www.sbp.org.pk/http://en.wikipedia.org/wiki/Currency_signhttp://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Pakistani_Englishhttp://en.wikipedia.org/wiki/Lakhhttp://en.wikipedia.org/wiki/Indian_numbering_systemhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Sanskrithttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Indo-Aryan_languageshttp://en.wikipedia.org/wiki/Sher_Shah_Surihttp://en.wikipedia.org/wiki/Sher_Shah_Surihttp://en.wikipedia.org/wiki/Common_Erahttp://en.wikipedia.org/wiki/British_Rulehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Paisehttp://en.wikipedia.org/wiki/Paisa


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Rs. 11998 -Present

Bronze andAluminium

Quaid-e-Azam,Muhammad AliJinnah

Hazrat Lal ShahbazQalandar Mausoleum,Sehwan Shareef

Rs. 21998 -Present

Brass andAluminium

Crescent and StarBadshahi Masjid,Lahore

Rs. 52002 -Present

Cupro-nickel Crescent and Star

For table standards, see the coin specification table.

BANKNOTES

PAKISTANI RUPEE - VARIOUSDENOMINATIONS

In 1947, provisional issues of banknotes were made, consisting of Government of Indiaand Reserve Bank of India notes for 1, 2, 5, 10 and 100 rupees overprinted with the text

"Government of Pakistan" in English and Urdu. Regular government issues commencedin 1948 in denominations of 1, 5, 10 and 100 rupees.The government continued to issue 1rupee notes until the 1980s but other note issuing was taken over by the State Bank in1953, when 2, 5, 10 and 100 rupees notes were issued. Only a few 2 rupees notes wereissued. 50 rupees notes were added in 1957, with 2 rupees notes reintroduced in 1985. In1986, 500 rupees notes were introduced, followed by 1000 rupees the next year. 2 and 5rupees notes were replaced by coins in 1998 and 2002. 20 rupee notes were added in2005, followed by 5000 rupees in 2006.

All banknotes other than the 1 and 2 rupees feature a portrait of Muhammad Ali Jinnahon the obverse along with writing in Urdu. The reverses of the banknotes vary in design

and have English text. The only Urdu text found on the reverse is the Urdu translation ofthe Prophetic Hadith, "Seeking honest livelihood is worship of God."

The banknotes vary in size and colour, with larger denominations being longer thansmaller ones. All contain multiple colours. However, each denomination does have onecolour which predominates. All banknotes feature a watermark for security purposes. Onthe larger denomination notes, the watermark is a picture of Jinnah, while on smaller
http://en.wikipedia.org/wiki/Bronzehttp://en.wikipedia.org/wiki/Bronzehttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_tablehttp://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Urduhttp://en.wikipedia.org/wiki/English_languagehttp://en.wikipedia.org/wiki/File:Pakistani_Rupee.jpghttp://en.wikipedia.org/wiki/File:PKR_5_rupees_(Back).jpeghttp://en.wikipedia.org/wiki/File:PKR_5_rupees_(Front).jpeghttp://en.wikipedia.org/wiki/File:PKR_2_rupees_(Back).jpeghttp://en.wikipedia.org/wiki/File:PKR_2_rupees_(Front).jpeghttp://en.wikipedia.org/wiki/File:Re1bk.jpeghttp://en.wikipedia.org/wiki/File:Re1fr.jpeghttp://en.wikipedia.org/wiki/Bronzehttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Quaid-e-Azam,_Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_tablehttp://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Urduhttp://en.wikipedia.org/wiki/English_language


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notes, it is a crescent and star. Different types of security threads are also present in eachbanknote.

Banknotes before the 2005 Series

ImageValue Dimensions

Main

Colour

Description -

ReverseStatus

Obverse Reverse

Rs. 1 95 66 mm BrownTomb of MuhammadIqbal in Lahore

No longer inCirculation

Rs. 2109 66 mm

PurpleBadshahi Masjidin Lahore

Rs. 5127

73 mmBurgundy

Khojak Tunnel

in Balochistan

Rs. 10141 73 mm

GreenMohenjo-daro inLarkana District

No longer printed - Stillin Circulation

Rs. 50154 73 mm

Purple andRed

Alamgiri Gate ofthe Lahore Fortin Lahore

Rs.100

165 73 mm

Red andOrange

Islamia Collegein Peshawar

Rs.500

175 73 mm

Green, tan,red, andorange

The State Bankof Pakistan inIslamabad

Rs.1000

175 73 mm

BlueTomb of Jahangir inLahore

These images are to scale at 0.7 pixels per millimeter. For table standards, see the banknote specification table.

The State Bank has started a new series of banknotes, phasing out the older designs fornew, more secure ones.

2005 Series

ImageValue Dimensions

Main

Colour

Description Date o

issueObverse Reverse Obverse Reverse

Rs. 5 115 x65 mm

GreenishGrey

MuhammadAli Jinnah

Gwadarport, whichis a mega project inBalochistan(Pakistan)

July 02008
http://en.wikipedia.org/wiki/Tomb_of_Muhammad_Iqbalhttp://en.wikipedia.org/wiki/Tomb_of_Muhammad_Iqbalhttp://en.wikipedia.org/wiki/Tomb_of_Muhammad_Iqbalhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Badshahi_Mosquehttp://en.wikipedia.org/wiki/Khojak_Tunnelhttp://en.wikipedia.org/wiki/Balochistan_(Pakistan)http://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/Larkana_Districthttp://en.wikipedia.org/wiki/Alamgiri_Gatehttp://en.wikipedia.org/wiki/Lahore_Forthttp://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Tomb_of_Jahangirhttp://en.wikipedia.org/wiki/Tomb_of_Jahangirhttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Gwadar_porthttp://en.wikipedia.org/wiki/Gwadar_porthttp://en.wikipedia.org/wiki/Balochistan_(Pakistan)http://en.wikipedia.org/wiki/Balochistan_(Pakistan)http://en.wikipedia.org/wiki/File:5rupees_back.JPGhttp://en.wikipedia.org/wiki/File:5rupees_observe.JPGhttp://en.wikipedia.org/wiki/File:Five_Pakistani_rupee.JPGhttp://en.wikipedia.org/wiki/File:Five_Pakistani_rupee2.JPGhttp://en.wikipedia.org/wiki/Tomb_of_Muhammad_Iqbalhttp://en.wikipedia.org/wiki/Tomb_of_Muhammad_Iqbalhttp://en.wikipedia.org/wiki/Tomb_of_Muhammad_Iqbalhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Badshahi_Mosquehttp://en.wikipedia.org/wiki/Khojak_Tunnelhttp://en.wikipedia.org/wiki/Balochistan_(Pakistan)http://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/Larkana_Districthttp://en.wikipedia.org/wiki/Alamgiri_Gatehttp://en.wikipedia.org/wiki/Lahore_Forthttp://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Islamabadhttp://en.wikipedia.org/wiki/Tomb_of_Jahangirhttp://en.wikipedia.org/wiki/Tomb_of_Jahangirhttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Muhammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Gwadar_porthttp://en.wikipedia.org/wiki/Gwadar_porthttp://en.wikipedia.org/wiki/Balochistan_(Pakistan)http://en.wikipedia.org/wiki/Balochistan_(Pakistan)


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Rs. 10115 65 mm

Green

Bab ulKhyberwhich is theentrance tothe Khyber

Pass,KhyberAgency,FATA

May 22006

86px Rs. 20123 65 mm

OrangeGreen

Mohenjo-daro inLarkanaDistrict

March 22008

Rs. 50 131 x 65m.m.

Purple

K2, secondhighestmountain

of theworld innorthernareas of Pakistan

July 02008

Rs.100

139 65 mm

Red

Quaid-e-AzamResidencyin Ziarat Novembe

11, 2006Rs.

500

147

65 mm

RichDeep

Green

BadshahiMasjid in

Lahore

Rs.1000

155 65 mm

Darkblue

IslamiaCollege inPeshawar

February26, 2007

Rs.5000

163 65 mm

MustardFaisalMosque inIslamabad

May 22006

These images are to scale at 0.7 pixels per millimetre. For table standards, see thebanknote specification table.

(*Recently the State Bank revised the Rs.20/- banknote, after complaints of its similarityto the Rs.5000/-, which caused a lot of confusion and financial losses, when people gave

out Rs.5000/- notes, thinking them to be Rs.20/- notes)

HAJJBANKNOTES

Due to the large number of pilgrims to the Kingdom of Saudi Arabia during the 1950s,the State Bank of Pakistan provided simple exchange facilities for Hajj pilgrims. The
http://en.wikipedia.org/wiki/Khyber_Passhttp://en.wikipedia.org/wiki/Khyber_Passhttp://en.wikipedia.org/wiki/Khyber_Agencyhttp://en.wikipedia.org/wiki/Khyber_Agencyhttp://en.wikipedia.org/wiki/FATAhttp://en.wikipedia.org/wiki/Wikipedia:Upload?wpDestFile=PKRs20RevBk.jpghttp://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/K2http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Quaid-e-Azam_Residencyhttp://en.wikipedia.org/wiki/Quaid-e-Azam_Residencyhttp://en.wikipedia.org/wiki/Quaid-e-Azam_Residencyhttp://en.wikipedia.org/wiki/Ziarathttp://en.wikipedia.org/wiki/Badshahi_Mosquehttp://en.wikipedia.org/wiki/Badshahi_Mosquehttp://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Faisal_Mosquehttp://en.wikipedia.org/wiki/Faisal_Mosquehttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Hajjhttp://en.wikipedia.org/wiki/File:5000_rupees_back.JPGhttp://en.wikipedia.org/wiki/File:5000_rupees_observe.JPGhttp://en.wikipedia.org/wiki/File:1000_rupees_back.JPGhttp://en.wikipedia.org/wiki/File:1000_rupees_obverse.jpghttp://en.wikipedia.org/wiki/File:Rs500bk.jpghttp://en.wikipedia.org/wiki/File:Rs500fr.jpghttp://en.wikipedia.org/wiki/File:Rs100bk.jpghttp://en.wikipedia.org/wiki/File:Rs100fr.jpghttp://en.wikipedia.org/wiki/File:50_rupees_back.JPGhttp://en.wikipedia.org/wiki/File:50_rupees_observe.JPGhttp://en.wikipedia.org/wiki/File:PKRs20RevFr.jpghttp://en.wikipedia.org/wiki/File:PakistanPNew-10Rupees-2006-dml_b.jpghttp://en.wikipedia.org/wiki/File:PakistanPNew-10Rupees-2006-dml_f.jpghttp://en.wikipedia.org/wiki/Khyber_Passhttp://en.wikipedia.org/wiki/Khyber_Passhttp://en.wikipedia.org/wiki/Khyber_Agencyhttp://en.wikipedia.org/wiki/Khyber_Agencyhttp://en.wikipedia.org/wiki/FATAhttp://en.wikipedia.org/wiki/Wikipedia:Upload?wpDestFile=PKRs20RevBk.jpghttp://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/K2http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Quaid-e-Azam_Residencyhttp://en.wikipedia.org/wiki/Quaid-e-Azam_Residencyhttp://en.wikipedia.org/wiki/Quaid-e-Azam_Residencyhttp://en.wikipedia.org/wiki/Ziarathttp://en.wikipedia.org/wiki/Badshahi_Mosquehttp://en.wikipedia.org/wiki/Badshahi_Mosquehttp://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Faisal_Mosquehttp://en.wikipedia.org/wiki/Faisal_Mosquehttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Hajj


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issue of special notes for the express use of the pilgrims was introduced. Although othermeans of exchange were considered, the high level ofilliteracy amongst the pilgrims andthe additional costs that would be incurred through the need to purchase such meansprevented the government from these methods of exchange. The State Bank Order toallow the issue of these "Hajj notes" was made in May 1950.

The use of Hajj notes continued until 1994. Until this date, stocks of notes were usedwithout the necessity of printing new notes with the signatures of the later Governors. Itis believed that, once the use of Hajj Notes was discontinued, most of the remainingstock of notes was destroyed. However, a large quantity of notes did find their way intothe collector market following their sale to a bank note dealer by the State Bank ofPakistan.

Hajj banknotes of Pakistan

ImageValue

Main

ColourDescription - Reverse

Date of

usageObverse Reverse

Rs. 10 Dark purple Shalamar Gardens inLahore

1960 - 1969

Rs. 10 Dark blue Mohenjo-daro in Larkana 1970 - 1976

Rs. 100 Dark orangeIslamia College(Peshawar)

1970 - 1976

For table standards, see the banknote specification table.

SPECIALBANKNOTE

Special banknote on 50th Independent celebrations of Pakistan

ImageValue

Main

ColourDescription - Reverse

Date of

usageObverse Reverse

Rs. 5 Dark purpleBaha-ud-din Zakariya TombMultan

1947-1997

For table standards, see the banknote specification table.

EXCHANGERATE
http://en.wikipedia.org/wiki/Means_of_exchangehttp://en.wikipedia.org/wiki/Illiteracyhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Shalimar_Gardens_(Lahore)http://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/Baha-ud-din_Zakariyahttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/File:5_rupees_b3.JPGhttp://en.wikipedia.org/wiki/File:5_rupees_f3.JPGhttp://en.wikipedia.org/wiki/File:PakistanPR7-100Rupees-ND_b.jpghttp://en.wikipedia.org/wiki/File:PakistanPR7-100Rupees-ND_f.jpghttp://en.wikipedia.org/wiki/File:PakistanPR6-10Rupees-(1970s)_b.jpghttp://en.wikipedia.org/wiki/File:PakistanPR6-10Rupees-(1970s)_f.jpghttp://en.wikipedia.org/wiki/File:Pakr04_b.jpghttp://en.wikipedia.org/wiki/File:Pakr04_f.jpghttp://en.wikipedia.org/wiki/Means_of_exchangehttp://en.wikipedia.org/wiki/Illiteracyhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Shalimar_Gardens_(Lahore)http://en.wikipedia.org/wiki/Mohenjo-darohttp://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Islamia_College_(Peshawar)http://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2http://en.wikipedia.org/wiki/Baha-ud-din_Zakariyahttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/Wikipedia:WikiProject_Numismatics/Style/Currency_article#Specification_table_2


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Dollar-rupee exchange rates

The Rupee was pegged to the US Dollar until 1982, when the government ofGeneralZia-ul-Haq changed it to managed float. As a result, the rupee devalued by 38.5%between 1982/83 and 1987/88 the cost of importing Raw Material Increased Rapidly, andcaused huge pressure on Pakistan finances, leading to a reversal of much of the economic

achievement under ZA Bhutto . The Pakistani rupee depreciated against the US dollaruntil the turn of the century, when Pakistan's large current-account surplus pushed thevalue of the rupee up versus the dollar. Pakistan's central bank then stabilized bylowering interest rates and buying dollars, in order to preserve the country's exportcompetitiveness. The year 2008 has been termed as disastrous year for the rupee as so far(up to August 2008) it has lost 23% of its value since December, 2007 to a record low of79.2 against US Dollar. The major reasons for this depreciation are ongoing politicalcrisis, increased current and trade accounts deficits and rising militancy in theNWFP andFATA areas.

HISTORYOF PAKRUPEE:

The Pakistani rupee was put in circulation after the country became independent in 1947.The currency was decimalized in 1961, with the rupee subdivided into 100 paise(singular paisa).Here are some details of the available limited legal tender currency ofPak Rupee. As ISSUING AUTHORITY is State Bank of Pakistan, the issued Coins wereas follows:

(1 Anna, 1 Paisa, 5 Paise, 10 Paise, 25 Paise (no longer minted))50 Paise, 1 Rupee, 2 Rupee, 5 Rupee, 10 Rupee

(1 Rupee, 2 Rupee, 5 Rupee (no longer printed)

The details of unlimited legal tender (from 100 to 5000) as Banknotes are:

10 Rupee, 20 Rupee, 50 Rupee, 100 Rupee, 500 Rupee, 1,000 Rupee, 5,000 Rupee
http://en.wikipedia.org/wiki/US_Dollarhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/Managed_floathttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/North_West_Frontier_Provincehttp://en.wikipedia.org/wiki/Federally_Administered_Tribal_Areashttp://en.wikipedia.org/wiki/File:USD-PKR_Exchange.JPGhttp://en.wikipedia.org/wiki/US_Dollarhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/Managed_floathttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/North_West_Frontier_Provincehttp://en.wikipedia.org/wiki/Federally_Administered_Tribal_Areas


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CURRENCY IMPORT/ EXPORT RESTRICTIONS:

Up to 3000 Rupees may be imported / exported, except with India. Only 500 Rupees may

be imported/ exported with India. Foreign currency may be imported/ exported for free.

Current PKR exchange rates: As of June 9, 2006, the rate was, 1 USD = Rs. 60.110, 1EUR = Rs. 76.015, 1 CNY = Rs. 7.5032.

The Pakistani rupee declined against the USA dollar until the start of the century, whenPakistan's current account surplus pushed the rupee up.The inflation pressures (and outlook), that caused concerns until 2005 , at last began toease in 2006, potentially in response to both, tight monetary policy pursued by SBP,which arrested the uptrend in core inflation, and better supply management of essentialfood items by the Government of Pakistan, which helped a fall in broad inflation.

In Pakistan KIBOR Rates are often important statistics. These are Karachi InterbankOffered Rates (KIBOR) KIBOR-Rates. KIBOR is the average asking price of theloans to be made by one bank to another, it has nothing to do with the banks

lending to corporate. That is why when banks quote KIBOR-based prices for loans totheir customers, it is the premium they demand over KIBOR, and not KIBOR itself thatreally takes into account the credit worthiness of the borrower and the prospects of loanrecovery or default. KIBOR is defined as the Average rate, Ask Side, for the relevanttenor, as published on Reuters page KIBOR or as published by the Financial MarketsAssociation of Pakistan in case the Reuters page is unavailable.

NIBAF stands for National Institute of Banking and Finance and was set up under theCompanies Ordinance 1984 with a paid up capital of Rs250.0 million. The equity wascontributed by the nationalized commercial banks and Pakistan Banking Council thatheld 3% of the shares in its name. Consequent upon dissolution of Pakistan BankingCouncil (PBC) in 1997 State Bank of Pakistan took over the assets and liabilities of PBCand also decided to purchase of assets of NIBAF. In February 1997 the TrainingDepartment of the State Bank was shifted to NIBAF premises at Islamabad andcommence functioning as State Bank Training Institute (SBTI) Islamabad.At present NIBAF has been reorganized and restructured .Its staffing has been reviewedand institutional arrangements have been put in place to make it as an institution ofMarketable repute.

In 2000 it was reported that the Pakistani rupee has almost become legal tender inAfghanistan and both buyers and sellers now prefer Pakistan currency than their owncurrency Afghani. During recent visits to Kandahar in southwestern Afghanistan and toJalalabad in the east of the war-ravaged country, a correspondent witnessed transactionsbeing openly carried out in the Rupee.


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STATE BANKOF PAKISTAN

The State Bank of Pakistan is the Central Bank of the Islamic Republic of Pakistan. TheBank started its operations on 1st of July 1948 SBP will continue to monitor inflationary

pressures. Additional policy firming may be considered as required in pursuit ofmaintaining the dual objectives of price stability and economic growth. In that respectSBP will remain prudent in responding to changes as needed to foster these objectives.Macroeconomic stability would also be helped by a continuation of fiscal discipline.Also, lower the reliance on short term funding by the government, by raising itsrequirements from the longer tenor Pakistan Investment Bonds (PIBs) will aid instrengthening government debt management, while offering a longterm reference rate tothe market and pushing out and shaping the yield curve.

Pakistan, officially the Islamic Republic of Pakistan, is a nation located in Southern Asiathat overlaps the Greater Middle East. It has a thousand km coastline along the Arabian

Sea in the south and borders Afghanistan and Iran to the west, India to the east and thePeople's Republic of China in the far northeast.

HISTORY AND ORIGINS OF THE PAKISTANI RUPEEThe origins or the nomenclature and motifs on the Pakistani coins have their origins inthe confluence of Greek Bactria and Buddhist Kushan empires in Pakistani Potowar andNorth West Frontier Province (NWFP), in the Nizams Hydrabadi (Deccan) sikkas aswell as Mughal Emperor Shah Alams design of the thistle garnishing our crests.

The topography around Taxila is complicated as it has been much affected by the uplift

of the Karakoram ranges, and by local folding during Quaternary times. The site occupiesa central place in the enclave formed coalescing valleys of the two streams. The mainroute from Pakistan to Central Asia and China which follows the open fertile corridorCholistan to Karrakrrum Hills divides at Txila. One path leads to Tibet and China, theother to Central Asia and one to the Indus Valley (The Archaeology of Early HistoricSouth Asia: The Emergence of Cities and States by Frank Raymond Allchin)

To trace the origins of the rupees, one has to drive about fifty miles from Islamabad andvisit the Taxila museum. Some of numismatics most celebrated rarities including theoriginal Rupee coin are displayed in an exhibit open to the public at the TaxilaMuseum.This is where the original rupee was minted and this is where it is saved. Taxila

was the capital of the Pakistani Ghandara civilization which grew out of Hellenisticinfluences on Kasniska Buddhist Empire. The rupee grew out of the clash of Bactria andKushan Empire.

Originally the rupee was divided into 16 annas, 64 paise, or 192 pies. Half a Rupee was 8Annas (Athanni), and a quarter rupees was called Chawanni (or a Quarter). It is 100%accurate is sometimes called correct as in 16 annas).


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ORIGINS OF THE WORD RUPEE:

The origins of the word Rupees can be traced back to the language spoken in Pakistanaround 6th century B.C. Rup, rupia, However a deep investigation shows that the word

has Arabic origins for the ocngugation of the Arabic word for Silver Qasaf. Jewlellerseven today are called Sarrafs

ORIGINS ORCURRENCY IN ANCIENT PAKISTAN:

5000 years ago the currency in vogue on what is today Pakistan was called the Kauri.These were special shells only available on the Mekran coast. The authorities at the timemonopolized the supply of the Kauri and used it as currency. The Kauri along withthe Harappan seals has been found as far as Hawai, and in many parts of the MiddleEastand Africa.

KUSHAN KUNIOS:

The early Kushan coins had Greek design on them 6th Century Rupee: Both gold andsilver coins were issued during the 5th and 6th centuries AD by the Gupta dynasty; thegold coins were called Dinars and the silver coins, Rupaka. Eight Rupakas were equal tohalf a dinar. But curiously the widespread existence of gold and silver coins of the Guptaera almost disappeared from the seventh century onwards. There were some silver coinsin south-eastern Bengal. Indeed, markings on the Gupta coins provide information aboutreligious rites while those dating back to Kanishkas time feature Iranian goddesses and

Zoroastrian concepts, suggestive of the multicultural stands that shaped Indias culturalfabric.

TUGHLAQS CURRENCY:

Muhammad Bin Tughlaq tried to issue copper coins backed by the Gold reserves, but thispolicy failed because of millions were forged and distributed. In 1833, the nomenclatureof British Bengal became British India and Bengal became one of the provinces ofBritish India; Calcutta being the imperial capital. Cowrie kept its dominant position in therural areas where transactions were basically of small scale SURIS CALLED IS

RUPEE: The derivative word Rpaya was used to denote the coin introduced by SherShah Suri during his reign from 1540 to 1545 CE. The original Rpaya was a silver coinweighing 175 grains troy (about 11.34 grams).

MUGHALS CALLED IT RUPEE:


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The Mughals called their currency Rupee. The rural sector was governed partly bycowrie and partly by direct exchange in kind and services. The exchange system of goodsagainst goods, service against service and labour against labour operated quite efficiently.

The most significant monetary contribution of the Mughals was to bring about uniformity

and consolidation of the system of coinage throughout the Empire. The system lastedlong after the Mughal Empire was effectively no more. The system of tri-metalism whichcame to characterise Mughal coinage was largely the creation, not of the Mughals but ofSher Shah Suri (1540 to 1545 AD), an Afghan, who ruled for a brief time in Delhi. SherShah issued a coin of silver which was termed the Rupiya. This weighed 178 grains andwas the precursor of the modern rupee. It remained largely unchanged till the early 20thCentury. Together with the silver Rupiya were issued gold coins called the Mohurweighing 169 grains and copper coins called Dam

If not entirely, but largely this barter feature of the economy gave way to exchangethrough money during the Mughal period. Foreigners, particularly maritime companies of

Europe, began to come by sea routes to participate in the Bengal export trade from the beginning of the Mughal rule. They came with bullion to buy Bengal merchandisebecause; their products had practically no market here. Large-scale import of silver andother treasures gave the Mughal government an opportunity to stimulate its economy backed by a broad-based currency system. Mint towns were established in Dhaka,Murshidabad and Patna where bullion was brought by shroffs for coining according toapproved weights and fineness. The Mughal currency was named Rupee (from Rupa orRupaiya).

All rupees coined under the reigning king were called Siccas. The Sicca Ruppeecontained about 175 grains of silver. The Sicca Rupee had an important political content.

On the accession of a new emperor to the throne, the rupees of the former regime weredeclared sanaut (devalued) and were made subject to a batta (discount). The sanaut rupeewas not received into the royal treasury even on discount. In the money market there wasa professional class of money changers called shroffs or sarrafs who bought the sanautrupees at a batta and took them to royal mint for recoining the bullion into Sicca Rupees.Emperor Akbar issued coins on Ram and Sita, revealed Bhandare. Then there wasMohammad Ghauri, seen usually in negative fanatical terms, who issued coins withGoddess Lakshmi on them.

JEHANGIRGOLD MOHURS HAVE 12 SIGNS OF THE ZODIAC

Coins of Shah Alam II had Urdu inscriptions surrounded by motifs of holly, shamrockand thistle! This is the same thistle that garnishes all Pakistani currency and thePakistani crest.

British Raj: In 1833, the nomenclature of British Bengal became British India and Bengalbecame one of the provinces of British India; Calcutta being the imperial capital.Thesilver coin was in used during the British Raj.The use of the Rupee was not confined to


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the Subcontinent its usage went as far as Arabia and even Africa, Somalia, Kenya allparts of the British Indian Empire at one time or the other. As part of the adoption ofthe Metric system, President Ayub Khan decimalized the currency in 1961even thugh sriLanaka had already done so almost a hundred years earlier.

Among the earliest issues of paper rupees were those by the Bank of Hindostan (1770-1832), the General Bank of Bengal and Bihar (1773-75, established by Warren Hastings),the Bengal Bank (1784-91), amongst others.

Notes issued by the Bank of Bengal can be categorised in the following three series.Unifaced series: The early notes of the Bank of Bengal were printed only on one side andwere issued as one gold mohur and in denominations of Rs. 100, Rs. 250, Rs. 500, etc.

Commerce series: Later notes had a vignette representing an allegorical female figurepersonifying commerce. The notes were printed on both sides. On the obverse the nameof the bank and the denominations were printed in three scripts, viz., Urdu, Bengali and

Devanagari. On the reverse of such notes was printed a cartouche with ornamentationcarrying the name of the Bank.

Brittania series: By late 1800s, the motif commerce was replaced by Britannia. Thenew banknotes had more features to prevent forgery

HYDRABAD RUPEE:

The currency was designated the Osmania Sicca (OS). One and five rupee notes weresubsequently issued in 1919 and one thousand rupee notes were issued in 1926. After the

setting up of the India Currency Notes Press at Nasik, Hyderabad notes came to be printed Hyderabad continued to mint its own coins until 1948, when the state was absorbed intoIndia. In 1950, the Indian rupee was introduced alongside the local currency, with therelationship of 7 Hyderabad rupees = 6 Indian rupees being used. In 1951, the Hyderabadrupee ceased to be issued and the Indian rupee became the main circulating currency,although the Hyderabad rupee was not demonetized until 1959

The COWRIE (Kadi) shell had been in use as the smallest unit of currency all throughoutancient times. The use of cowrie as medium was there in the rural areas even in the latenineteenth century, even afterwards, in some places. Cowrie was then obtained from

Maldive in exchange of rice

MODERN RUPEE BASED ON SILVER:

The rupee was a silver based currency. This had severe consequences in the nineteenthcentury, when the strongest economies in the world were on the gold standard. The


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discovery of vast quantities of silver in the U.S. and various European colonies resultedin a decline in the relative value of silver to gold. Suddenly the standard currency of Indiacould not buy as much from the outside world. This event was known as the fall of the

YEARWISE COMPARISONOF PAKRUPEEAND USA DOLLAR

1955 Govn. Gen. Ghulam Muhammad.......$ 1=Rs. 4.701958-69 Self Appointed Field MarshalGen. Ayub Khan....$ 1=Rs. 4.701969- Gen. Ayub Handed over power to Gen. Yahya Khan.$ 1=Rs. 4.701971 WAR INDIA V/S PAKSITAN1971-72 Zulfiqar Ali Bhutto(Shaheed) to Save Pakistan...$ 1=Rs. 11.001973-74 Z. A. Bhutto $1=Rs. 09.901977-82 Gen. Zia ul Haq $ 1=Rs. 10.841984 Gen. Zia $ 1=Rs. 15.361986 Gen. Zia . $ 1=Rs.17.251988 Gen. Zia $ 1=Rs.18.651989-90 Benazir Bhutto $ 1=Rs.21.901991 Nawaz Sharif $ 1=Rs. 24.721993 Benazir Bhutto $ 1=Rs.30.881996 Benazir Bhutto $ 1=Rs.34.211997 Nawaz Sharif $ 1=Rs.40.071999 Gen. Musharraf $ 1=Rs.50.102002 Gen. Musharraf $ 1=Rs.63.002003 Gen. Musharraf $ 1=Rs.60.682007 Gen. Musharraf $ 1=Rs.61.002008 Gen. Musharraf $ 1=Rs.63.002008 Gen. Mush,+PPP+PML(N)+ANP+MQM+ETC $ 1=Rs.78.00

YEARWISE ISSUANCE OF PAKRUPEE NOTES

10 Rupees (1953)10 Rupees (1957)50 Rupees (1957)5 Rupees (1972-78)10 Rupees (1972-75)50 Rupees (1972)1 Rupee (1975)1 Rupee (1983)5 Rupees (1975-84)

2 Rupees (1985-99)5 Rupees (1983-84)10 Rupees (1983-84)50 Rupees (1986)100 Rupees (1986)500 Rupees (1986)1000 Rupees(1988)5 Rupees (1997)


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10 Rupees (2006)20 Rupees (2005)100 Rupees (2006)500 Rupees (2006)5 Rupees (2008)

CONCLUSIONThe long and short of the story is that the currency of an economy can never be in astable position but can be sustained for short time duration. But here in the case ofPakistan economy, political instability had a great impact on the foreign exchange ratewhich was ultimately effect on the foreign trade and reserves as well. Due to thisinstability, dollar reserves are decreasing consistently which is leading to the continuousdecrease in the value of Pak rupee.

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