Traveler’s Guide To The Currency Usage In Pakistan
Wonder what currency is used in Pakistan? Understanding the local currency, the Pakistani Rupee (PKR), is essential for navigating daily transactions and making the most of your visit. In this currency guide to Pakistan, we will take a look at some of the monetary things you need to know as a traveler to this country.
Currency Overview
The Pakistani Rupee (PKR) is the official currency of Pakistan, abbreviated as PKR and represented by the symbol Rs. The rupee is divided into 100 paise. The State Bank of Pakistan, established in 1948, is responsible for issuing and regulating the currency, ensuring its stability and integrity. The PKR has experienced fluctuations over the years, with recent exchange rates indicating that 1 U.S. dollar is approximately equal to 278 PKR as of October 2024.
Currency History
The Pakistani rupee was introduced shortly after Pakistan gained independence from British India in 1947. Initially, Indian rupees were stamped with “Pakistan” and used as a temporary currency. In 1948, the Pakistani government began issuing its own banknotes. The rupee was decimalized in 1961, replacing the previous system of annas with paise. Over the years, the PKR has transitioned to a managed float system since 1982, leading to periodic devaluations in response to economic conditions.
Currency Usage Guide
Denominations:
- Coins: Commonly used coins include 1 rupee, 2 rupees, and 5 rupees. Coins for paise are no longer in circulation as of 2013.
- Banknotes: Banknotes are available in denominations of ₨10, ₨20, ₨50, ₨100, ₨500, ₨1,000, and ₨5,000.
Tips for Travelers:
- Cash is Essential: While credit cards are accepted in larger hotels and some restaurants, cash is crucial for smaller vendors and markets. Always carry sufficient local currency.
- ATM Availability: ATMs are widely available in major cities like Karachi and Lahore; however, they may not dispense small denominations. Regular withdrawals of smaller amounts are recommended.
- Currency Exchange: Currency exchange services can be found at banks and authorized exchange bureaus. It’s wise to check rates before exchanging money to ensure you receive a fair deal.
- Foreign Currency Acceptance: Some establishments may accept U.S. dollars or euros; however, using the local PKR is recommended for better rates.
Major Banks in Pakistan
- National Bank of Pakistan (NBP)
Established in 1949, NBP is one of the largest banks in Pakistan with an extensive network of branches and ATMs across the country. It offers a wide range of services including personal banking, corporate banking, and Islamic banking solutions. - Habib Bank Limited (HBL)
Founded in 1941, HBL is one of the oldest commercial banks in Pakistan. It provides various financial products including retail banking services, corporate finance solutions, and international banking services. - United Bank Limited (UBL)
UBL was established in 1959 and has grown to become one of the leading banks in Pakistan. It offers a comprehensive range of financial services including personal banking accounts, loans, and investment options. - MCB Bank Limited
MCB Bank was founded in 1947 and focuses on providing retail banking services along with corporate finance solutions. It emphasizes customer service and innovative banking products. - Bank Alfalah
Established in 1997, Bank Alfalah offers a variety of banking services including personal accounts, business loans, and Islamic banking products tailored to meet diverse customer needs. - Meezan Bank
Launched in 2002 as Pakistan’s first Islamic bank, Meezan Bank specializes in Sharia-compliant financial products aimed at both individuals and businesses seeking ethical financing options. - Faysal Bank
Founded in 1994, Faysal Bank provides various banking services including retail banking and corporate finance solutions while focusing on customer-centric financial products. - Standard Chartered Bank (Pakistan)
Part of the global Standard Chartered Group, this bank offers international banking services including personal accounts and investment solutions tailored for expatriates living in Pakistan. - Al Baraka Bank (Pakistan)
A subsidiary of Al Baraka Banking Group based in Bahrain, Al Baraka Bank focuses on providing Sharia-compliant banking products aimed at promoting ethical finance practices. - Bank Islami Pakistan Limited
Established in 2005 as an Islamic bank, Bank Islami offers a wide range of Sharia-compliant financial products including savings accounts and business financing solutions.
Understanding the currency system in Pakistan will not only facilitate your financial transactions but also allow you to immerse yourself fully in this dynamic country as you explore its rich culture and diverse landscapes.
