\u201cDuring the course of this calendar year we will see movement in the policy rate going south,\u201d says FinMin
\nISLAMABAD
\nFinance Minister Muhammad Aurangzeb on Wednesday indicated there was room for further reduction in Pakistan\u2019s policy rate during the ongoing calendar year, citing a decline in both average and core inflation.
\n\u201cAt present, the policy rate is at 11%. I am always very careful that the policy rate and the market-based exchange rate are very much the purview of the central bank, the State Bank of Pakistan, and the Monetary Policy Committee,\u201d Aurangzeb said.
\n\u201cHaving said that, my own view, and I am giving my personal view here, is that given the current inflation, whether it is the average inflation or the core inflation, I do think there is room to do more in terms of the policy rate, and I am very hopeful that during the course of this calendar year we will see movement in the policy rate going south,\u201d he added.
\nThe central bank left its key interest rate unchanged at 11% on July 30, going against analyst expectations.
\nThe bank, held the rate steady, saying the inflation outlook had deteriorated due to rising energy prices.
\nThe next policy rate announcement is due on September 15, according to the State Bank of Pakistan\u2019s calendar.
\nThe finance czar linked monetary easing to broader economic progress, saying national security and economic stability are interdependent. He noted that multiple economic indicators were showing improvement, including a 60% surge in the stock exchange alongside an increase in new investors.
\n\u201cWe are heading in the right direction,\u201d he told reporters, adding that the government was committed to providing a better environment for the business community and encouraging the private sector to lead the economy. \u201cOur economic and financial achievements are being recognised globally. There is hope for further improvement in the coming days.\u201d
\nThe minister said company registrations had risen by 250,000, loans to the private sector were up 38%, and the government had paid one trillion rupees in debt servicing over the past year. He also pointed to reduced electricity tariffs, expected improvements in energy costs, and ongoing reforms in tax administration.
\nOn the fiscal side, Aurangzeb said the federal government had begun a right-sizing process for 45 ministries and departments, and the privatisation of state-owned enterprises would accelerate. Agreements with China were also in progress, alongside plans to issue Panda Bonds by year-end.
\nExtending Independence Day greetings, he emphasised the sacrifices behind Pakistan\u2019s identity and urged unity in working towards a prosperous future.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u201cDuring the course of this calendar year we will see movement in the policy rate going south,\u201d says FinMin ISLAMABAD Finance Minister Muhammad Aurangzeb on Wednesday indicated there was room for further reduction in Pakistan\u2019s policy rate during the ongoing calendar year, citing a decline in both average and core inflation. \u201cAt present, the policy […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-496687","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n