Article by Currency Information and Research

Current Condition of the Pakistani Currency (as of Aug 2015)

Currently, Pakistan is one of the countries with the highest rate of economic growth in the Middle East. Its population saw 10% decrease in poverty and the economy to maintain growth rates of around 7% for several years in a row in the past decade, which were only interrupted due to the global crisis of 2008. Indeed, the year 2008 can be called a catastrophic year for the rupee. After the presidential elections in August, it scored a point where the currency had already lost 23% of its value. Taken into account the cumulative period from December 2007, the result was a record low of 79.2 rupees for every 1 dollar. Recalling that the currency had been stabilized for over three years below 60 rupees per US dollar. In 2008 the Pakistani crisis was exacerbated by power outages that helped contribute to the dismal scenario, and rising unemployment.

Another factor that contributed to the country passing through this rough patch in the economy, was the deficits of the bank accounts of its citizens, mainly caused by easy credit. This was largely uncontrolled and widespread and fell on the country like a financial bomb as it were after 2002. Right when it was thought that everything was going well for Pakistan.

The problems exposed for all to see how serious the crisis was, it was proved that foreign reserves were leaving the country and were now amounted to less than $ 2 billion. The amount would be recovered only in 2011, when Pakistan hit a new high, positive this time; bookings reached the mark of 17 billion dollars - where more than 60% were invested or applied.

Since after every bad phase good phase followed, the country finally went to live in good times, thanks to various political and economic reforms that have been implemented since the early 2000's. With these measures Pakistan has grown again from 2010, establishing cooperation agreements and investments with powerful countries in the region such as China and increasing their dollar reserves, which amounted to tens of billions of dollars. Coming investment of fruit from abroad in various areas, and from basic materials to industry aerospace and software, also contribute to a feeling of relative ease.

The Central Bank of Pakistan has also stabilized the exchange rate, lowering interest rates and buying dollars in order to preserve the competitiveness of exports.

After all its ups and downs, the Pakistani economy always tries to recover from rough financial occurrences. Today the country is considered one of which that are in full swing and it's been called one of the members of the "Next Eleven", a group that comes right after the G20 among the largest and most important global economies.

In May 2015, Standard and Poor’s ratings agency raised Pakistan’s credit rating to positive from stable but affirmed its B- rating, citing the countries expected economic growth.


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