To control inflation and contain the current account deficit, the State Bank of Pakistan (SBP) has decided to leave its policy rate unchanged at 15% for the next two months. In July, inflation had gone up to 24.9pc.
In its Monetary Policy Statement, the SBP stated, ““To cool the overheating economy and contain the current account deficit (CAD), the policy rate has been raised by a cumulative 800 basis points since last September, some temporary administrative steps have recently been taken to curtail imports, and strong fiscal consolidation is planned for FY23.”
In addition the SBP confirmed that Pakistan had successfully secured $4bn from Qatar, Saudi Arabia and UAE. There is also hope that the expected $1.2bn from the IMF will assist in securing funding from other lenders.
The SBP Acting Governor Murtaza Syed said that, “Pakistan will get $2bn from Qatar, $1bn from Saudi Arabia under the umbrella of deferred oil facility and $1bn investments from the UAE in various sectors.”
