The currency of Pakistan is the Pakistani Rupee, abbreviated as PKR. It is issued and regulated by the State Bank of Pakistan, which plays a crucial role in the country's monetary policy. The rupee is subdivided into 100 paise, although paise coins are no longer commonly used. Since its introduction, the Pakistani Rupee has seen fluctuations against other currencies due to various economic factors, including inflation rates and balance of payments. It is essential for all transactions, trade, and commerce within Pakistan, making it a vital part of the country's economy.