The Rupee is the official currency of Pakistan. The currency is managed by the Bank of Pakistan, the main financial institution of the nation.
Economy
The economy of Pakistan has endured decades of domestic political feuds, a fast-growing population, varying levels of overseas investment, and an expensive, ongoing border dispute with India.
Significant macroeconomic amendments beginning in 2000, in particular privatizing the banking sector, have helped the economy.
In 2005, the World Bank named Pakistan the top reformer in its area and among the top 20 reformers globally.
The central financial institution is trying to tighten money policy while still encouraging growth.
Recurring international worker remittances are helping to build foreign exchange reserves, however the country faces a growing current account deficit due to the high reliance on imports. The increasing trade deficit could draw down these reserves and slow GDP growth in the near future.
History
The word Rupee is from the Sanskrit word rup or rupa, which means silver in most Indo-Aryan dialects.
The Pakistani Rupee was put into circulation in 1947, after the nation became independent from British Rule.
For some time after independence, Pakistan used Indian cash and banknotes with Pakistan stamped on them.
The current cash and banknotes were issued beginning in 1948. (Seems to contradict the second bullet.)
Similar to the Indian Rupee, the Pakistan Rupee was originally divided into sixteen annas, each composed of four pice or 12 pie.
The Pakistan Rupee was decimalized on January 1, 1961 and partitioned into a hundred pice; the name was changed to pais later the same year.
