SBP clarifies concerns over projections in annual report FY21

November 29, 2021 (MLN): The State Bank of Pakistan (SBP) on Saturday, clarified the concerns recently raised by some sections of media over the macroeconomic projections in the SBP’s annual report FY21.

According to the press statement, SBP explained that the annual report FY21 predominantly analyses economic developments during the financial year 2020-21, i.e. the period from July 2020 to June 2021. It is for this period that most of the data in the individual chapters have been used.

In the report’s Overview (Chapter 1), the Economic Outlook section contains the SBP’s macroeconomic projections for FY22. These baseline projections were similarly estimated on data outturns for FY21, and finalized in July 2021, using data available as of then.

It may be noted that the SBP’s annual and quarterly reports are always published with a lag, mainly due to the multi-stage review and approval process, to ensure quality checks and analytical consistency.  Subsequently, the monetary policy statement of 19th Nov 2021 has provided a more recent assessment of the economic outlook, the statement added.

Moreover, the press release introducing the annual report on the state of Pakistan’s economy (ERD/M&PRD/PR/01/2021-132, dated November 24, 2021), has also been accordingly amended for clarity of future viewers, SBP said.

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