Which Currency Should Be Preferred To Repay Loan Borrowed Several Years Ago?
Both parties should adhere to the terms agreed upon at the time the loan was disbursed. The repayment should be made in the currency originally specified in the agreement. Furthermore, any adjustment for the time value of money (such as inflation) should be applied in accordance with the method or basis agreed upon at that time. However, if no such terms were specified, both parties should seek a resolution that is fair and equitable. In the present case, repayment in UK Pounds rather than Pakistani Rupees would be more just, as it better reflects the time value of money compared to repayment in PKR.