Business

SBP’s Monetary Policy Committee to meet on Nov 25

Published

2 years ago

Farwa

The State Bank of Pakistan will announce its new monetary policy on November 25.
The Monetary Policy Committee will meet on Friday at SBP Karachi.
Last month, the SBP decided to leave its key interest rate unchanged at 15% for the next seven weeks.

KARACHI: The State Bank of Pakistan (SBP) will announce its new monetary policy after a meeting of the Monetary Policy Committee (MPC) on Friday.

In a statement, the central bank says, “The Monetary Policy Committee of SBP will meet on November 25 at SBP Karachi to decide about the Monetary Policy. Later on, SBP will issue the Monetary Policy Statement through a press release on the same day.”

SBP leaves interest rate unchanged

Last month, the SBP had decided to leave its key interest rate unchanged at 15% for the next seven weeks.

“The committee was of the view that based on currently available information, the existing monetary policy stance strikes an appropriate balance between managing inflation and maintaining growth in the wake of the floods,” the central bank in a thread shared on Twitter.

The MPC meeting was the first after the start of SBP Governor Jameel Ahmad and Finance Minister Ishaq Dar assumed charge.

The decision to maintain a status quo was in line with Dar’s old recipe of running a controlled economy, under which he would like to have an easy monetary policy.

The SBP hds increased the rate by a cumulative 800 basis points in 11 months (September 2021 to July 2022) to 15%.

The interest rate and flexible rupee-dollar parity are the two major tools available to central banks all over the world to control inflation readings and give direction to the economic trajectory in their respective countries.

Monetary and inflation outlook

The MPC stated that in line with slowing economic activity, private sector credit has seen a net retirement of Rs 0.7 billion so far this fiscal year, compared to an expansion of Rs 62.6 billion during the same period last year.

“This decline in credit mainly reflects a retirement of working capital loans and a sharp fall in consumer finance,” the statement read.

The SBP said that looking ahead, the supply shock to food prices from the floods is expected to put additional pressure on headline inflation in the coming months.

Nevertheless, headline inflation is still projected to gradually decline through the rest of the fiscal year, particularly in the second half.

Thereafter, it should fall towards the upper range of the 5-7% medium-term target by the end of the fiscal year 2023-24.

A continuation of prudent monetary policy and orderly movements in the rupee should help contain core inflation going forward. At the same time, curbing food inflation through administrative measures to resolve supply-chain bottlenecks and any necessary imports should be a high priority, the central bank noted.

In line with the above-mentioned factors, the MPC will continue to carefully monitor developments affecting medium-term prospects for inflation, financial stability, and growth.

Business

Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

Published

15 hours ago

Farwa

There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

Business

SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

Published

15 hours ago

Farwa

Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

Business

July 2024 export data from Pakistan shows a significant rise.

Published

17 hours ago

Farwa

The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.