An examination of the historical statistics of the rupee against the dollar over the last 75 years shows that despite the unfavorable conditions, our economy and currency were much better than that of India in the early years of Pakistan’s formation. About 7 months and 15 days after independence, on April 1, 1948, Pakistan started its financial and commercial financial independence by issuing its own currency. Took over On September 18, 1949, a major decision of the world economy was made when the United Kingdom announced the devaluation of the pound against the dollar, after which the pound depreciated to اع 8.3. The subcontinent was a major blow to the Indian subcontinent’s economy, forcing many countries, including India, to devalue their currencies, but the new Prime Minister, Liaquat Ali Khan, refused to devalue the rupee against the dollar. done. The government said that the biggest buyer of Pakistan’s jute and cotton is the United States, so it was decided that the sterling pound would be approximately equal to 9 Pakistani rupees and 100 Pakistani rupees would be equal to 144 Indian rupees. Remember, at that time Pakistan was the only member country of the Commonwealth, which restored the value of its currency. The decision came as a shock to the world. At that time, India, with which many of our financial affairs were running, rejected this decision and cut off all business relations with Pakistan, but then, exhausted, on February 25, 1951, it recognized the value of the unconditional Pakistani currency, which Later, Indian currency became one hundred rupees and Pakistani currency became 78 rupees and eight paise. Prime Minister Liaquat Ali Khan, while addressing a meeting in Montgomery (Sahiwal), proudly said, “We have been pressured to reduce the value of the currency, but we have not come under any pressure. Today, India is forced to trade on our terms.” In this context, if we look at the democratic government from 1947 to October 1958 and then the military government till 1971, it is clear that despite the political and economic ups and downs, the value of the rupee has been very good in those periods.
After the fall of Dhaka due to Indian Georgia in December 1971, Zulfiqar Ali Bhutto, the founding chairman of the Pakistan People’s Party, became the Prime Minister. This was the most critical period in Pakistan’s history, with Indian aggression causing irreparable damage, both geographically and economically. Things had changed, the country was facing various pressures, including from international financial institutions. In this most difficult period, the government of the day made many difficult but beneficial decisions through its successful diplomacy. On May 11, 1972, during the Bhutto regime, the value of the dollar rose from 70 paise to 4 rupees to 11 rupees. On July 5, 1977, the country’s army chief, General Muhammad Zia-ul-Haq, took over the government. Until May 1978, the dollar was available in the market at Rs. As a result of Russian intervention in Afghanistan under General Zia-ul-Haq, Pakistan became a frontline state on this front. During this period, the Pakistani currency remained relatively strong at that time due to the dollar’s rise in the form of full support from the US and its allies, easy installment loans and facilitation of repayment of past loans. When General Zia-ul-Haq died in a plane crash, that day the dollar was 18 rupees 36 paise. During that period, the dollar rose by about 10 rupees. After a long struggle in late 1988, the Pakistan People’s Party, under the leadership of Benazir Bhutto, regained power. The first elected female Prime Minister of the Islamic world and Pakistan was sworn in as the Prime Minister on December 2, 1988. The selling price of the dollar was 18 rupees 81 paise and the buying price was 18 rupees 61 paise. When his government was ousted on August 6, 1990, the dollar was worth 21 rupees and 85 paise.
On November 6, 1990, Mian Nawaz Sharif of the Pakistan Muslim League became the Prime Minister for the first time. At that time the selling price of the dollar was 22 and the buying price was 21 rupees 78 paise. During his tenure, several major projects were formulated, including the privatization of various government institutions. When he resigned from the government on July 8, 1993, the selling price of the dollar was 28 rupees 31 paise and the buying price was 28 rupees. On October 19, 1993, power again fell to the PPP. At that time the buying price of the dollar was 30 rupees 23 paise and the selling price was 29 rupees 92 paise. Even this government led by Prime Minister Benazir Bhutto could not fulfill its term. When his government was overthrown on November 5, 1996, the dollar reached 43 rupees. On February 17, 1997, when the Nawaz Sharif government came to power for the second time, the buying price of the dollar reached 41 rupees and the selling price reached 41 rupees 5 paise. During Mian Nawaz Sharif’s tenure, several major projects, including the privatization of state-owned enterprises, were launched. At that time Indian Georgia was on the rise. The extremist party, the BJP, was in power when it detonated a nuclear bomb on May 28, 1998, expressing hatred against Pakistan. After which a series of threats of serious consequences started from the Indian extremist leadership, then Pakistan also had to carry out nuclear detonation in response. There was a strong international response and Pakistan faced all kinds of economic sanctions. The then government made several tough decisions to deal with the situation, but even this government of Mian Muhammad Nawaz Sharif could not fulfill its term. At the time of the overthrow of the government on October 12, 1999, the selling price of the dollar was 54 rupees 34 paise and the buying price was 54 rupees 39 paise. When General Pervez Musharraf came to power on October 12, 1999, the selling price of the dollar in the open market was 54 rupees 34 paise and the buying price was 54 rupees 39 paise. Even then, Pakistan was a frontline state and US ally in the ongoing war on terror in Afghanistan. During this time, Pakistan was facing all kinds of loss of life and property, but with it came significant financial support from the international community, including aid, loans on easy terms and delay in repayment of loans. However, after the victory of General Pervez Musharraf’s opposition parties in the February 18, 2008 elections, his grip on power weakened, after which on February 19, 2008, the selling price of the dollar was recorded at around Rs. 63.
In March 2008, power came to the PPP for the fourth time. When Yousuf Raza Gilani took over as Prime Minister on March 25, 2008, the buying rate of the dollar in the open market was 62 rupees 80 paise and the selling price was 63 rupees. The four months of the new government were marked by political tensions. When President Pervez Musharraf resigned on August 18, 2008, the buying and selling of dollars was going up from Rs 74.50 to Rs 75.50. At that time, the government was facing many internal and external challenges, including terrorism in the country, reduction of aid and repayment of late debts of Musharraf regime. By the time the PPP government completed its term in March 2013, the dollar had reached Rs 99. The rupee depreciated the most during the PPP regime. From June 2013 to May 2018, the PML-N was in power. Mian Muhammad Nawaz Sharif was elected Prime Minister for the third term. At that time, the buying price of dollar was 99 rupees 65 paise and the selling price was 99 rupees 85 paise. Then after the judicial incompetence of Mian Muhammad Nawaz Sharif, on May 31, 2018, when the PML-N government led by Shahid Khaqan Abbasi completed its term, the dollar reached 115 rupees 67 paise in the interbank market.
On August 18, 2018, when PTI Chairman Imran Khan was sworn in as the Prime Minister, the dollar was being sold at Rs. Three years and nine months later (April 10, 2022), after the end of his prime ministership, the dollar reached 186 rupees to fifty paise. For the first time in the history of the PTI government, the rupee depreciated sharply in a single day and the dollar rose by Rs. 12, 75 paise. On that day, the dollar had risen from Rs 124.25 to Rs 137 in the interbank market. The second major setback came on May 16, 2019, when the dollar rose by Rs. 5, 13 paise to Rs. 146, 52 paise.
However, in the past many periods of government have seen a gradual devaluation of the rupee, sometimes under economic compulsion and sometimes under economic strategy. However, under the PTI government, the rupee plunged to a record low, the dollar strengthened and the rupee depreciated to a record low of 64 rupees. Critics have called it a bad policy of the previous government, at the expense of the present government and the people. According to economists, the agreement with the IMF to improve the value of the rupee will increase foreign exchange reserves, which will improve our global financial reputation, which will help restore the value of the rupee.
The world’s 10 largest and strongest currencies
The five Arab-Muslim countries of the Middle East, rich in oil, although small in population and area, are among the top five strongest currencies in the world. This is followed by Europe and the United States.
Kuwait: The Kuwaiti dinar, bordering Iraq and Saudi Arabia, is the world’s most valuable currency. Heavy oil exports to the world market are said to be the main reason for its financial strength. A Kuwaiti dinar costs 3.2 dollars. Its value in Pakistani Rupees is 650.04.
Bahraini Dinar: Bahrain is a small island nation in the Persian Gulf, dependent on crude oil and natural gas exports and a major source of income. The Bahraini dinar is the second largest currency in the world after the Kuwaiti currency. A Bahraini dinar costs about 65 2.65. Its value in Pakistani Rupees is 528.07.
Omani Rial: The riyal of the Kingdom of Oman, bordering the United Arab Emirates, Saudi Arabia and Yemen, is the third largest currency in the world. Its main source of income is oil.
Jordanian Dinar: Most of Jordan consists of the Arabian Desert. However, the northwestern part of it is fertile. It is bordered by Saudi Arabia to the east and Israel to the west. The state’s only port is shared by Israel, Egypt and Saudi Arabia. Dinar GOT is the official currency, which is the fourth largest currency in the world.
Pound: The official British currency, the pound sterling, is the fifth highest currency in the world. From the beginning of the eighteenth century until the second decade of the nineteenth century, the British pound ruled the world. Then the US dollar took its place. However, the pound is still one of the most widely used currencies today. The price of one pound is one point two six and the price in Pakistani rupees is 249 rupees.
Gibraltar Pound: Gibraltar, despite being a small autonomous region of the United Kingdom, has a strong economy. The Gibraltar pound is its official currency. The currency is also exchanged for a value equivalent to the British pound.
European Euro: The European Euro is the second most stable currency in the world after the dollar. It has been used all over the world, including Europe, since the beginning of this century. One euro in Pakistani rupee is close to 211 rupees.
Frank Swiss: Switzerland, located in Europe, is considered to be the most beautiful and peaceful country in the world. Millions of tourists visit here every year. The currency here, the Swiss franc, is worth 0.4 per dollar, while its value in Pakistani Rupees is 207.22.
US Dollar: A global power, the value of the US official currency is lower than that of other early world currencies, but it is considered the most trusted currency globally.
Canadian Dollar: Canada, which gained independence from Britain, is a shadow of the United States, an industrialized and developed country. Its economy is dependent on natural resources and trade. Its currency is the Canadian dollar. In Pakistan, the Canadian dollar is close to 158 rupees.
(Note that the exchange rate of these currencies against Pakistani Rupee is based on June 2, 2022.)