Monetary policy announced: Inflation unchanged at 11-12% for the full fiscal year 2020

By Web Desk - Senior Editor

28th January, 2020

State Bank of Pakistan (SBP)  has announced Monetary policy for the next two months, left the benchmark interest rate unchanged at an eight-year high of 13.25%.

SBP Governor Baqir Raza addressed a press conference in Karachi n here on Tuesday, he said that the central bank has decided to maintain the interest rate and has kept its projection for inflation unchanged at 11-12% for the full fiscal year 2020.

Responding to statements that the central bank’s monetary policy rate is tight, he said that real interest rate is used to calculate monetary policy.

The Governor also told media in his briefing that based on the real interest rate our interest rates are not a lot they are less than average. He said Pakistan’s real interest rates compared to other countries in the region are not very high.

He also said that the economic activity was improving and the bank was announcing measures to boost the export sector, which is important for foreign exchange reserves.

SBP chief said that the central bank offers two schemes; Long Term Financing Facility (LTFF) and Export Finance Scheme (EFS) for the export-oriented sector.

“Today we are announcing that we are increasing the credit allocated to the sector by Rs200 billion [for both the schemes].”

Governor Baqir said that they were trying to control inflation but also wanted to lend support to the export sector that are boosting our reserves.

He said that the limit for LTFF was being increased by Rs100 billion and where previously it was available for some sectors it was now open to all sectors that contribute to exports.

“We want our exports to increase. As long as they are exporters they will be eligible for financing from LTFF scheme,” the governor added.

The purpose of this exercise is to support the export sector, which is must to make economic development sustainable.

He said that they will also bring a policy for small exporters in the coming weeks who want to innovate products.

“Apart from export facilitation, we are also announcing measures to help business community in investment.”

He also said that the volumetric production of cement and power sector are on the rise.

 


You May Also Like

Saudi riyal to PKR Rates today
23rd Feb, 2020

Today SAR to PKR Rates – 1 Saudi Riyal to Pakistani Rupees On 23 Feb 2020

The Latest SAR/PKR exchange rate is 41.3. (Last updated on February 23,...

Gold rates in pakistan 23th of feb
23rd Feb, 2020

Gold Rates: Latest Gold Rate In Pakistan, On 23 February 2020

Latest Gold Rates And Currency Rates Are Available At Bolnews. The Gold...

State Bank of Pakistan has released instructions related to the withdrawal of the RS 40,000 denomination National Prize Bonds.
22nd Feb, 2020

Last date to encash Rs 40,000 prize bonds is 31st March

State Bank of Pakistan has released instructions related to the withdrawal of...

Toyota
22nd Feb, 2020

Toyota plans partial output resumption at all four China plants

Toyota Motor Corp said it planned for all four of its vehicle...


Latest News

Waqar Zaka
22nd Feb, 2020

Waqar Zaka’s Take on PSL Opening Ceremony

Pakistan Super League opening ceremony was a bummer. The only thing that...

Trump in India
22nd Feb, 2020

Trump in India – History of US presidential visits

Donald Trump – The President of the United States of America is...

Kamran Akmal
22nd Feb, 2020

PSL 2020: Zalmi star Kamran Akmal hits 1st century of PSL

Kamran Akmal opening Batsmen of Peshawar Zalmi smashed the 1st century of...

LABARD Mela
22nd Feb, 2020

LABARD Mela – For Special Children at Jilani Park Lahore

LABARD Mela – 2020 held on Saturday at Ghulam Jilani Park that...