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ISLAMABAD
Governor State Bank Reza Baqar has said that the exports have recovered to their pre-Covid monthly level of around $2 billion, with the strongest recovery in textiles, rice, cement, chemicals, and pharmaceuticals.
Pakistan needs to focus on competitiveness and reduce imports even further to support local businesses, Reza Baqar said.
Addressing the plenary on “Pakistan’s Economic Response to Covid-19 and Way Forward for an Inclusive Economic Recovery” on the second day of the 23rd Annual Sustainable Development Conference of the Sustainable Development Policy Institute (SDPI) on Tuesday, the State Bank governor said to boost economic activity and job opportunities in the country, the State Bank of Pakistan is working with the banks to see that lending to Small and Medium Enterprises (SMEs)and housing financing facilities are increased in collaboration with banks.
He said that under the Prime Minister’s instruction, the government has coordinated a consistent and holistic policy to promote housing and construction sector. At the Central Bank’s end, we are working with the banks to help them support this sector, he added.
The Governor of the central bank said: “India’s economy has suffered sharp decline. Pakistan has not been hard hit because the country controlled COVID-19 well and the government and SBP took timely measures to stop bankruptcies from happening since that can lead to major and long-term implications. Now that demand is coming back from world market, our exporters were ready due to the liquidity and smart lockdowns. What we need to focus on now is to increase our export-to-GDP ratio.”
Dr Reza Baqir said under the TERF scheme, SBP would refinance banks to provide financing at a maximum end-user rate of 7% for 10 years for the purpose of new imported and locally manufactured plants and machinery for setting up new projects and expansion for existing projects/businesses.
