Indian Rupee is strongest in a decade. One Dollar is almost 39.5 Indian Rupees, where as One Dollar is almost 61 Pakistani Rupee.
Pakistani goods would be much cheaper than Indian goods in US and other countries. Also outsourcing to Pakistan would be much cheaper than India.
Re: Indian Rupee vs Pakistani Rupee
denada.. You have upconverted 60.8 to 61 and downconverted 39.88 to 39.5!
Re: Indian Rupee vs Pakistani Rupee
Depends on what day/time u checked. Pakistan has an advantage to make use of much cheaper labor than India. There will not be much savings when IT work is outsourced to India.
Re: Indian Rupee vs Pakistani Rupee
I don't think labor will be cheaper in Pakistan compared to India, despite the difference in currency strength.
Re: Indian Rupee vs Pakistani Rupee
During 9/11 Pakistan was almost bankrupt. Since then Americans have been pouring in millions of dollars in Pakistan, reserves have gone up. Why hasnt the currency become stronger?
Re: Indian Rupee vs Pakistani Rupee
$ still decresed to INR 
Re: Indian Rupee vs Pakistani Rupee
During 9/11 Pakistan was almost bankrupt. Since then Americans have been pouring in millions of dollars in Pakistan, reserves have gone up. Why hasnt the currency become stronger?
It would be disadvantage to Pakistan if Pak rupee becomes stronger (or weaker) with respect to dollar. Best policy is to keep currency floating still stable.
As for labour cost, what I know Indian minimum wages is around Ind Rs 1000 a month, whereas minimum wage in Pakistan is Pak Rs 4600 a month. Now, you can work out where labour would be cheaper. (Though I believe Pakistan labour productivity is much more than Indian labour productivity)
Re: Indian Rupee vs Pakistani Rupee
For a company to move its operations from one country to another, it looks at the available qualified manpower, infrastructure, political stability among many other things. Labour is cheaper in India than China, but India does not have the infrastructure in place (roads,ports, auxiliary suppliers etc) that can support massive manufacturing like China can and thus companies do not shift their factories from China to India.
Similarly Pakistan does not have a large pool of qualified manpower that can sustain large scale service industry operations.