Pakistani rupee rises as poll results boost reform hopes

Muscat: The Pakistani rupee (PKR) has appreciated against the US dollar in the first few days after the results of the general elections started trickling in.
Cricketer-turned-politician Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) emerged as the single largest party in the 11th general elections held recently in the country.
“Market sentiment has tremendously improved as a result of the historic elections,” said Noaman Abdul Majid, Country Manager at the Pak Oman Investment Company.
“The business community is confident about the comprehensive economic reform plan envisaged by the new government, which includes the economic uplift of the masses, institutional reforms, regional peace initiatives, and global image building of the country.
“This will result in improved foreign investment flow into the country, which will further improve its foreign exchange position.”
“In addition, since the overseas Pakistani community is also in a very upbeat mode, it will positively respond to any development initiatives launched by the new government,” added Majid. “As a whole, the macroeconomic outlook is very positive.”
Confidence in the Pakistani market has soared amid expectations that the PTI will form a stable coalition government.
“The PKR stood at a conversion rate of OMR333 until July 24 but has appreciated by PKR2 post-election between July 24 and 27,” said Syed Faraz Ahmed, General Manager at Oman United Exchange, in an exclusive interview with the Times of Oman.
“Moreover, it is further expected to appreciate by PKR6 or PKR7, reaching OMR323 to OMR324 in the next couple of days.”
The Pakistan Stock Exchange Index also went up by 750 points after the elections, said Ahmed.