SBP Governor Says, Inflation Would Decrease in Coming Days due to Coronavirus outbreak.
Reza Baqir, Governor State Bank of Pakistan, said the inflation is expected to decrease in the coming days’ and the central bank ready to “take action” regarding the interest rate in a pandemic situation.
He said the central bank decided the interest rate. Moreover, he said, “The statistics that we have with us clearly show that inflation is expected to decrease further in the coming days,”
Further he said, “As we are constantly receiving information about the country’s economy, the State Bank will be ready to take action.”
He explained and said it is important for the government to take action on employment and economic growth. The SBP governor said Pakistan had been cut its basis points by 255, which is the second-highest decline globally.
Regarding the loan scheme, he said, the businessman who does not lay off will avail 5% loan rate and who are on active tax list they will able to 1 % interest rate as well.
On the question about Pakistan’s declining reserves, he said Pakistan’s economic situation was improving before this pandemic situation. If the virus arrives earlier, then the outcomes could be worse. Our stock market was high, and economic fundamentals were strengthening, investors were confident in the market, So the reserves decline due to commercial repayments.
Baqir also said International Monetary Fund, World Bank, and Asian Development bank are ready to provide loans to Pakistan to deal with the pandemic.
According to Baqir, the government is involved in focusing on industries and maintaining employment, but it is not the time to get involved in such things. However, he said we are ready to cooperate with this economic challenge.