KARACHI
\nDr Reza Baqir, Governor of SBPis confident that the IMF will revive the $6 billion loan programme as Pakistan has fulfilled all \u2018preconditions\u2019.
\nIn a media interview he said: \u201cWe are confident it (IMF Program) will revive as some of the key measures recently taken by the government have been in the direction to fulfill the IMF\u2019s prior actions\u201d.
\nHe further said that Pakistan is also tapping international capital markets and then also hoping that other multilateral institutions such as the World Bank and ADB will also resume their financing operations for Pakistan.
\nTo a question related to risks to GDP growth, Governor SBP said that key risk on the domestic front is rising cases of Omicron. However, he was confident that Pakistan would tackle this wave successfully like previous waves.
\nOn the external front, he identified three risks including uncertain oil prices, faster than anticipated adjustment of global interest rates and geopolitical situation in Europe. If oil prices continue to rise and rise steeply that will be a major risk for Pakistan like other oil-importing emerging markets, he said.
\nTalking on amendments to the SBP Act, he clarified that this is not the first time that State Bank\u2019s Act is being amended. It was also amended in 2015 and 2012, he mentioned.
\nHe further said that each time the purpose of the amendment was to give more operational autonomy to the central bank. The current amendment will provide clarity to goals of the central bank and these goals have been defined as price stability, financial stability and supporting growth. Second key measure is to improve and strengthen the accountability of SBP, he added.
\nTalking about the exchange rate, the governor SBP said that before June 2019, Pakistan\u2019s exchange rate was fixed, while currently Pakistan has a free-float exchange rate. During the last calendar year Pakistan\u2019s exchange rate was 163 compared to 161 the previous calendar year, which means depreciation is one percent.
\nOn day to day basis the rupee has been recently adjusted but again it has in line with several emerging markets countries and also largely it\u2019s a result of very high commodity prices that has jacked up import bill and it is help full for the rupee to adjust in such circumstances to keep our CA deficit sustainable, he further explained.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Dr Reza Baqir, Governor of SBPis confident that the IMF will revive the $6 billion loan programme as Pakistan has fulfilled all \u2018preconditions\u2019. In a media interview he said: \u201cWe are confident it (IMF Program) will revive as some of the key measures recently taken by the government have been in the direction to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-241123","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-top-news"},"yoast_head":"\n