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Can Indian Rupees (INR) be used or exchanged in Pakistan without converting it to dollars? My parents are travelling to Pakistan and they've been told that it can be used by the people who are making their travel arrangements. I'm not sure because I can't find any credible proof through a quick google search.

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I think you can't. You will have to convert it to USD first. –  NomadTraveler Jun 3 '13 at 5:43
    
Could you provide a link or something to give the OP reassurance? Or past experience? –  Mark Mayo Jun 3 '13 at 5:56
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I don't have a link to back this up, unfortunately. But, this is from my memory..also, I have a few Pakistani mates, who confirmed this. –  NomadTraveler Jun 3 '13 at 6:04

2 Answers 2

I'm afraid that Indian Rupees can't be used in Pakistan. From iatatravelcentre.com

Currency Import regulations:

Foreign currencies : unlimited. However, amounts exceeding USD 5,000.- (or equivalent) in cash, or USD 10,000.- (or equivalent) in traveller's cheques must be declared; Local currency (Indian Rupee-INR): INR 7,500.- for residents of India, except when arriving from Bhutan and Nepal. For residents arriving from Bhutan and Nepal: no limit in amount of INR but notes no bigger than INR 100.- may be carried.

Foreign currencies include currency notes, traveller's cheques, cheques, drafts etc. (Re)exchange only through banks and authorized money exchange points.

Currency Export regulations:

Foreign currencies : up to the amount imported and declared. Local currency (Indian Rupee-INR): INR 7,500.- for residents of India, except when departing to Bhutan and Nepal. For residents departing to Bhutan and Nepal: no limit in amount of INR but notes no bigger than INR 100.- may be carried.

Foreign currencies include currency notes, traveller's cheques, cheques, drafts etc. (Re)exchange only through banks and authorized money exchange points.

So you're allowed to export up to 7500 INR (130 USD) only if you're indian resident. As people are not allowed to export a big amount of INR I don't believe it would be possible to pay everywhere in Pakistan with INR.

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Where does that say anything at all about Pakistan? All you've just confirmed is that they can legally export and bring back up to INR 7,500 each from/to India. –  jpatokal May 12 at 13:17
    
@jpatokal I am just saying that due to currency export restrictions it'd be hard to find a shop that accept INR. –  Dirty-flow May 12 at 13:37

No. I am not sure why the agent is telling you this.

Indian rupees may be imported (there are no restrictions, other than the normal AML restrictions), but they are not legal tender and most exchange houses will not accept them.

You cannot change them for Pakistani rupees inside Pakistan. It would be best to convert them to USD.

A small point to clarify, you also mentioned "without changing them to dollars" the fact is unless its a major trade currency, all currencies are first converted to dollars and then that dollar amount is converted to the local currency when you go to the exchange house.

Of course, if you give direct dollars (and in some places, euros) it does not apply; but for all other currencies the conversion process is literally you are "buying dollars" and then converting the dollars to the local currency.

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As the answer by @Dirty-flow shows, Indian rupees cannot be imported in large quantities. Whereas the limit on the USD is 10000, the limit on the INR is 7500 and that too only for Indian residents. At current rates, this is roughly equivalent to USD 110. They are certainly not "normal" AML restrictions. –  Aditya Somani Aug 6 at 5:57
    
Actually that answer only applies for Indian customs (if you are traveling to India). It has no bearing on Pakistan. –  Burhan Khalid Aug 6 at 6:06
    
If you cannot get INR out of India legally how do you explain having a lot of INR in any other country anyway? Basically if the Indian Government finds out that you have INR outside of India in large amounts, this would mean it reached there illegally in the first place and should ideally be confiscated. –  Aditya Somani Aug 6 at 6:08
    
Also your point about being legal tender. Consider revising, Indian Rupees are legal tender in India. They might not be legal tender in other countries, but questioning that fact makes no sense anyway. The same way, US dollar is not legal tender in India. –  Aditya Somani Aug 6 at 6:10
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Regarding your second point - in Pakistan, you can pay for goods in USD; some companies even pay their employees in USD and not PKR. –  Burhan Khalid Aug 6 at 6:13

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