KARACHI: In line with expectations, the rupee appreciated as much as 4.6% against the US dollar in inter-bank trading on Monday, following reports that China had agreed to immediately lend $2 billion to Pakistan.
The positive economic indicators are considered to be largely driven by what investors consider the return of political stability following the July 25 polls.
The national debt will decline by Rs450 billion as the rupee consolidates gains against the greenback.
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On Saturday, the US dollar had depreciated by Rs4 in the open market. The positive development was attributed to the end of political uncertainty following elections.
In the past week, the greenback’s price had soared as high as Rs130 as Pakistan moved to its second democratic shift of power amid security threats and terrorist attacks in different parts of the country.
Pakistan’s economic fundamentals had deteriorated ahead of the July 25 general election. Since December, the rupee had cumulatively shed over 21% of its value after the State Bank of Pakistan reportedly abstained from intervening in response to the pressure exerted by a widening current account deficit.