Dec 19, 2019: Governor State Bank of Pakistan (SBP) Dr Reza Baqir on Thursday said that economic indicators have become positive, and with mobilisation of national resources more relief will be provided to the private sector in future.
Addressing the business community at Faisalabad Chamber of Commerce and Industry (FCCI) here, he recounted various steps taken for transforming the economic deficit into surplus and added that during the first six months, the exchange rate had been switched from fixed to the market driven rate.
He said that imports had been reduced while exports had recorded a modest increase and the SBP was optimistic that with the confidence of private sector more facilities would be given to the sector.
He compared Pakistan with Egypt and said that in Egypt exchange rate was increased 125 per cent within only 24 hours, but in Pakistan only 55 per cent increase was recorded during 18 months.
Regarding the interest rate, he said that in case of Egypt it jumped to 18-19 per cent while in Pakistan interest rate was still 13.25 per cent.
Regarding inflation, he said that it is 30-35 per cent in Egypt while it is only 12 per cent in Pakistan despite criticism by some elements in the country. He said that the macro level index was positive and now his focus was on controlling inflation.
He was optimistic that within the next few months, inflation would start decreasing. Comparing savings with inflation rate, he said that people prefer to invest their savings in the real estate.
However, he was making efforts to bring these investments through banking channels. He disclosed that 20-30 per cent more revenue had been collected and as the situation would ease, more facilities would be announced for exporters.
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