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The currency was decimalized in 1961, with the rupee subdivided into 100 paise (singular
paisa).
The Pakistani rupee declined against the USA dollar until the start of the century, when
Pakistan's current account surplus pushed the rupee up.
The inflation pressures (and outlook), that caused concerns until 2005, at last began to
ease in 2006, potentially in response to both, tight monetary policy pursued by SBP,
which arrested the uptrend in core inflation, and better supply management of essential
food items by the Government of Pakistan, which helped a fall in broad inflation.
In Pakistan KIBOR Rates is often an important statistic. These are Karachi Interbank
Offered Rates (KIBOR) KIBOR-Rates
KIBOR is the average asking price of the loans to be made by one bank to another, it has
nothing to do with the banks lending to corporates. That is why when banks quote
KIBOR-based prices for loans to their customers, it is the premium they demand over
KIBOR, and not KIBOR itself that really takes into account the credit worthiness of the
borrower and the prospects of loan recovery or default. KIBOR is defined as the Average
rate, Ask Side, for the relevant tenor, as published on Reuters page KIBOR or as
published by the Financial Markets Association of Pakistan in case the Reuters page is
unavailable.
It is Karachi Inter Bank Offer Rate (KIBOR), given by specialized institution on daily,
weekly, monthly and on 1, 2 and 3 yearly basis to all the commercial banks of Pakistan
so that they charge interest to their customers on that basis. This rate is inflation-adjusted
rate and then banks by adding 2 or 3% in KIBOR rate charge their customers for their
profit.