The level of inflation in Pakistan is increasing day by day and it seems that it will not decrease anymore. In such a situation, people of the old days are seen mentioning their cheap era and today’s generation finds it unbelievable.
Inflation in Pakistan is related to the cheapness or expensiveness of the dollar. But do you know how many rupees the dollar was worth in the early days of Pakistan?
Let us tell you, how many rupees the dollar has been worth in the past, which you will be surprised to know. When Pakistan came into existence, 1 US dollar was worth 3.31 rupees. Due to economic changes, inflation, and currency policies, the value of the dollar fluctuated significantly over time.
The following chart is being given in this regard, after which the reasons for the strong Pakistani rupee in 1947 are mentioned.
1)Â Â At the time of independence, Pakistan had a relatively small economy with controlled inflation.
2) Â The Pakistani rupee was initially pegged to the British pound, which kept it stable.
3) Â The price of goods and services was significantly lower, which made the rupee’s purchasing power stronger.
4) Â Pakistan’s trade was not as heavily dependent on foreign exchange transactions as it is today.
