1 USD to PKR in 1947 Why Pakistan’s Rupee Was So Strong Then

When Pakistan became independent on August 14, 1947, the Pakistani Rupee (PKR) was surprisingly strong against the US Dollar (USD). Back then, 1 USD was equal to just 3.31 PKR! Compare that to today (February 2026), where 1 USD is around 279-280 PKR. That’s a massive change over 79 years. Let’s explore this easy and interesting history in simple words.

What Was the Exact Rate in 1947? At independence, Pakistan used the old Indian Rupee system (with “Government of Pakistan” stamps on notes). The currency was pegged (fixed) to the British Pound Sterling because of colonial history.

• 1 USD = 3.31 PKR (official parity rate, around 3.3085 exactly from early records).
• 1 British Pound = about 13.33 PKR.
• Why this low rate? Pakistan had zero foreign debt at the start, no big loans, and followed a stable fixed system linked to the strong British pound (which was worth about 4 USD back then). This made the rupee powerful and stable right after freedom.

This rate stayed almost the same for the first few years (1947-1950s), as confirmed by historical data from IMF, State Bank of Pakistan, and economists.

Why Did the Rupee Lose Value Over Time? Simple Reasons The rupee started weakening due to real economic challenges:

• 1955: First devaluation to about 4.76 PKR per USD (to match India).
• 1972: Big drop after East Pakistan became Bangladesh – economy hurt, rate jumped to 11 PKR.
• 1980s-2000s: Slowly rose to 50-100 PKR with more imports, loans, and inflation.
• Recent Years (2018-2026): Fast changes – from 120 to highs near 300 PKR (due to debt, floods, global issues), now stable around 279-280 PKR.

Main causes: More imports than exports, heavy foreign debt, political ups/downs, and shift from fixed to floating rates (market decides now).

Quick Timeline Table (Easy to See):

• 1947 (Independence): 1 USD = 3.31 PKR
• 1955: 1 USD ≈ 4.76 PKR
• 1972: 1 USD ≈ 11 PKR
• 2000: 1 USD ≈ 50-60 PKR
• 2010: 1 USD ≈ 85 PKR
• 2020: 1 USD ≈ 160-170 PKR
• 2026 (Now): 1 USD ≈ 279-280 PKR

Conclusion In 1947, the rupee was strong because Pakistan was fresh, debt-free, and tied to a stable British system. Over time, economic pressures made it weaker against the dollar. It’s a reminder of how much can change in one country’s journey! Understanding this history helps explain today’s rates and why stability matters.