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Showing posts from January, 2023

Monetary Policy of State Bank and Pakistan Economy

  Monetary Policy of State Bank of Pakistan: a Review and Impact Analysis  By:        Irfan Karim                   Introduction Monetary policy of any country involves various tools to influence interest rates in the banking and financial markets and/or money supply in an economy with the objective to achieve stability in inflation and to support economic growth. State Bank of Pakistan Act, 1956 empowers the central bank to frame monetary policy to secure financial stability and to attain better utilization of economy’s productive resources. State Bank of Pakistan issues Monetary Policy every 6-8 weeks after a committee of experts (Monetary Policy Committee) carries out review of economic data and prevailing trends. Latest Monetary Policy Statement (MPS) was issued in September , 2023 with a key decision to continue with existing  Policy Rate of 22%. Considering the prevailing extraordinary...

Bloomberg also acknowledges Pakistan's progress towards managing its debt repayments and avoiding default

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                                                 by : Irfan Karim Source: GEO News Pakistan Pakistan will not default: Bloomberg Economics A person shows US dollars at a currency exchange store in Manila, Philippines, October 21, 2022. — Reuters Investors worried about debt repayment due in April 2024. Islamabad needs more external aid to meet its obligations. It expects IMF will release the remaining loan tranches. Cash-strapped Pakistan is still reeling from the troubles which aren't over, however, it looks like the country of 220 million people will dodge  default  in the next six months,  Bloomberg Economics  reported Monday. While it seems like the resumption of the International Monetary Fund (IMF) programme will help the country sail through the end of June investors are worried about a big dollar debt repaymen...