KARACHI: The State Bank of Pakistan (SBP) has announced that the key interest rate will remain unchanged at 11 percent for the next two months.
Addressing a press conference, SBP Governor Jameel Ahmad said the decision was made after reviewing all key economic indicators. He noted that inflation reached its lowest point in April but witnessed a slight uptick in May and June.
The governor attributed the recent increase in inflation to base effects and rising energy prices, stating that inflationary pressures may continue in the near term. Currently, Pakistan’s inflation rate stands at 7.2 percent, he added.
Governor State Bank said exports increased by 4 percent, workers remittances increased by $ 8 billion, workers’ remittances were surplus.
Governor Jamil Ahmed said that exports need to be increased for current account control, remittances this year was more than $ 38 billion, which was $ 30 billion last fiscal.
The Governor State Bank said that in the financial year 2022, the current account was more than 4 percent of national production, we made all our debt payments on time, fulfilled domestic imports and other foreign exchange requirements, our foreign exchange reserves increased $ 5 billion after 26 billion payments.
He said that due to improved ratings, loans are getting cheap and sources have also increased, our reserves are better than our payments, foreign exchange reserves will be $ 15 and a half and $ 17 billion by June.
Governor Jamil Ahmed said that the current fiscal year is $ 25.9 billion payments, with payments for the current fiscal year $ 22 billion is original while $ 4 billion is interest.
He said that the economic growth in the financial year 25 was 2.7 percent, the agricultural sector growth was 0.6 percent significantly, but the agricultural sector would increase this fiscal year, while national production growth would be 3.25 to 4.25 percent.
The Governor State Bank said that energy prices are likely to increase in the future, increasing economic activity increased imports of petroleum products.
He added that the inflation rate will be 5 to 7 percent this fiscal year, with inflation for a few months more than 7 percent.