The Pakistani Rupee's Long Decline Against the US Dollar: A 77-Year Timeline

When Pakistan gained independence in 1947, the exchange rate was remarkably stable: 1 USD equaled just 3.31 PKR. For nearly a decade, this peg held firm, reflecting a newly formed nation trying to maintain monetary stability. Fast forward to 1955, and the first crack appeared—the rate shifted to 3.91 PKR per dollar.

The 1970s: The First Major Collapse

The real shock came in 1972, when 1 USD suddenly jumped to 11.01 PKR. This wasn’t random—it coincided with Pakistan’s economic crisis and the aftermath of the 1971 war. By the late 1970s, the rate stabilized around 9.99 PKR, but the damage was done. The rupee had lost nearly 70% of its value in just a few years.

The 1980s and 1990s: Steady Erosion

Throughout the 1980s, the rupee continued its slow bleed. By 1989, 1 USD fetched 20.54 PKR—more than double the previous decade. The 1990s accelerated this trend dramatically. In 2002, when many look back at recent history, 1 USD was worth 60.58 PKR—already a fraction of what it once was. Just three years earlier in 1999, it had been 51.90 PKR.

2000s to 2010s: Persistent Weakness

The 2000s saw the rupee bounce between 57-85 PKR per dollar, with 2008’s global financial crisis pushing it to 81.18 PKR. By 2013, the weakness had deepened to 107.29 PKR per dollar—the rupee had lost roughly 97% of its 1947 value.

2018-2024: The Acceleration

The real freefall began in 2018 (139.21 PKR), worsening through 2019 (163.75 PKR) and 2020 (168.88 PKR). But the crisis accelerated in 2022-2023: the rupee plummeted to 240 PKR and then 286 PKR per dollar—levels that seemed unimaginable just a few years prior. As of 2024, it sits around 277 PKR, still historically weak.

What This Tells Us

In just 77 years, the Pakistani rupee depreciated by over 8,200% against the US dollar. The chart isn’t just about numbers—it’s a mirror of inflation, political instability, fiscal deficits, and economic mismanagement. Each jump in the data represents a moment of national economic stress.

For crypto investors and traders watching emerging market currencies, Pakistan’s rupee story is a cautionary tale: fiat currency weakness creates demand for alternative stores of value. Whether it’s gold, precious metals, or digital assets like Bitcoin, this is why people in regions with depreciating currencies often turn to hedges outside their local financial system.