Are you planning a trip to Pakistan to visit family, explore the country’s bustling cities, or hike its scenic mountain ranges? If so, Pakistan currency, the rupee, is your ticket to paying for travel expenses abroad. You’ll need to understand the Pakistani rupee if you plan to visit and engage in financial transactions in the country.
Learn how to send money to Pakistan instantly through Western Union, exchange money in the country, and what you should look out for along the way.
What is the currency in Pakistan?
The rupee is the currency of Pakistan. It’s abbreviated as PKR and symbolized as “₨.” The country’s central bank, the State Bank of Pakistan, issues rupees and regulates the currency.
Coins are available in 1-, 2-, 5-, and 10-rupee denominations. Banknotes are issued in denominations of 10Rs up to 5,000Rs. Each banknote features a prominent national figure, landmark, or cultural symbol from Pakistan. Most banknotes prominently feature the founder of Pakistan, Muhammad Ali Jinnah, in the design. Notes also utilize security measures like watermarks and micro-printing to combat counterfeiting.
Throughout the years, Pakistan has printed commemorative banknotes and coins to mark national events and anniversaries, such as the country’s 50th anniversary of independence, Wild Life Conservation Day, and the birth of Islamic poet and philosopher, Allama Iqbal.
History of the Pakistani rupee
Pakistan has not always been a sovereign nation, and the Pakistani rupee’s history was intertwined with the Indian rupee. Before 1947, when Pakistan was part of British India, the Indian rupee was the common currency. Upon partition and Pakistan’s independence on August 14, 1947, British Indian rupee notes were stamped with “Government of Pakistan” for temporary use.
In 1948, the Pakistani rupee was introduced as the official currency of the newly independent nation. Banknotes issued by the newly formed State Bank of Pakistan featured Urdu, Bengali, and English inscriptions, reflecting the country’s linguistic diversity. Initially, the rupee was subdivided into 16 annas, each anna worth 4 paise. However, in 1961, Pakistan adopted the decimal system, dividing the rupee into 100 paise. 1, 5, and 10-paisa coins were issued in 1961, followed by 25 and 50 paisa coins in 1963. While these coins are still legal tender, they are rarely used due to their low value and the discontinuation of their production.
Unfortunately, the Pakistani rupee has not fared well as a stable currency for the nation’s residents since its inception. While the rupee was originally pegged to the British pound sterling, it moved to a managed-floating exchange policy in 1982. What followed were decades of economic policy changes, inflation, and rising debt, which have created economic and monetary instability. Most recently, the Pakistani economy experienced high inflation, and the rupee lost significant value compared to other global currencies.
7 tips for exchanging US dollars for Pakistani rupees
The USD to PRK exchange rate will vary between exchanges. But you’ll also want to take note of these tips to help you securely exchange your US dollars for Pakistan currency at a low cost.
1. Research and compare exchange rates
Your exchange rate is the key to getting more rupees for your USD, especially since the rupee is a floating-rate currency that changes daily. When looking to convert currency in Pakistan, do your best to shop around for rates at various exchanges, such as banks, exchange providers like Western Union, and even online platforms. Exchange providers like Western Union offer competitive rates and transparent fees, making it a great option to consider.
You can also track live exchange rates to get a sense of today’s rate and what you may be able to receive.
2. Notify your bank ahead of traveling
Pakistan is not a regular tourist destination for most Americans, so your bank could quickly flag any transactions from Pakistan as fraud, making it difficult to transact there. Before you depart on your trip, notify your bank of where you will be traveling so they don’t freeze your bank account or credit cards.
3. Avoid exchanging money at airports, hotels, and tourist areas
The best way to exchange currency is typically not at the airport when you arrive. Airports, like tourist areas and hotels, are notorious for offering poor exchange rates on your currency transfer. Avoid these money exchangers when looking to swap your USD for Pakistan money. Lastly, avoid street vendors who are more likely to exchange counterfeit bills or scam you out of your money.
4. Consider commissions and fees
Before finalizing any currency conversion, read all your exchange details to ensure you catch any fees. The fees you pay to a currency exchange service will greatly affect your ability to get the most Pakistani currency for your USD.
For example, ATMs usually charge a foreign currency fee, while exchange providers at hotels and airports will likely charge you a commission or convenience fee. Even currency services that don’t charge a fee will likely offer you a worse exchange rate and pocket the difference as a commission.
5. Withdraw Pakistani rupees instead of US dollars from ATMs
ATMs can be the quickest way to get cash when you’re in Pakistan. You can be charged in USD or PKR when withdrawing cash from an ATM. To better reduce your fees, the best way to convert currency is to take your withdrawal in Pakistani currency. Withdrawing local currency lets your bank handle the conversion, often at a better rate, and avoids additional fees associated with dynamic currency conversion.
6. Exchange money in Pakistan instead of the US
If you like planning trips ahead of time, you might be tempted to convert your money at home. However, you’ll have difficulty finding a place to exchange USD for rupees. Even if you find an exchange provider at home, exchange rates for the currency of Pakistan are not as favorable as they are once you arrive at your destination.
It’s best to hold off on exchanging money until after you are in Pakistan and can transfer money at an exchange like Western Union. We have numerous agent locations throughout Pakistan where you can easily and securely exchange your USD for Pakistani rupees.
7. Use reputable exchanges
While traveling in Pakistan, you may come across many signs and businesses promoting their money exchange services. But if you want to ensure you stay safe, only use reputable money exchanges like Western Union to get currency in Pakistan. The country has a series of exchange bureaus, which include banks and other financial companies licensed to provide money exchange services.
Reputable exchanges are the best way to convert currency and have added security features that will keep your money and identity safe. For instance, the Western Union® app provides transfer tracking, encryption, Touch ID compatibility, and PCI DSS compliance for all money exchanges.
Using money in Pakistan
Pakistan is mostly a cash-based economy. If you’re going to use currency in Pakistan, it’s best to have banknotes on hand.
Can you use US dollars in Pakistan?
Pakistani rupees are accepted across the entire country and useful wherever you go. Goods and services will be priced in rupees, and you’ll be offered a better value for using the local currency. There may be tourist areas and large cities like Islamabad and Karachi where USD is accepted, but don’t count on it. Ensure you have enough rupees to pay for your travel expenses and avoid confusion over exchange rates when purchasing.
Tipping etiquette in Pakistan
There is no standard practice of tipping in Pakistan. Restaurants are the most common place to tip, with a 5-10% tip appreciated by the staff. A service fee may be included on your bill at upscale restaurants. You can leave small amounts of change as a tip for taxis, hotel staff, and other services, but it isn’t necessary or expected.
Where to get Pakistani rupees near me?
You can get Pakistan rupees at any Western Union currency exchange near you in the country, as well as at many other exchange bureaus like:
- AA Exchange
- NBP Exchange Company
- Royal International Exchange Company
- Islamabad Exchange Company
- Pakistan Currency Exchange Company
Just make sure to follow the previous tips for selecting the best Pakistan currency exchange service for you.
FAQs
Can I use my credit card in Pakistan?
Most vendors in Pakistan prefer cash to credit card payments. While Visa cards are commonly accepted in large cities and tourist areas, be prepared for your credit card not to be accepted everywhere. It’s best to call your credit card company in advance to ensure you can swipe your card in Pakistan.
Can I use my debit card in Pakistan?
Debit cards are sometimes usable in Pakistan, but the country operates mostly in cash. If you plan to use your debit card in Pakistan, notify your bank of your travel plans before you arrive so your card isn’t frozen.
How much is the US dollar in Pakistani rupees?
The USD to PKR exchange rate depends on where you exchange your currency and at what time. Since the exchange rate fluctuates daily, you’ll want to check the most recent rates online, through the Western Union app, or at a Western Union agent location before exchanging currency.
Can I exchange money through Western Union in Pakistan?
Yes, Western Union has numerous agent locations across Pakistan where you can exchange currency or receive money sent from abroad.
