The State Bank of Pakistan (SBP) has signed an agreement with the International Finance Corporation (IFC) — a member of the World Bank Group — to strengthen local currency financing and support private sector growth in Pakistan, according to a press release issued on Monday.

According to the World Bank, borrowing in foreign currencies exposes clients to the risk that debt and debt service payments (as measured in local currency) increase when the local currency depreciates. However, by converting to local currency, clients are able to address that risk.

The statement released by the central bank today said that........

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