April 22, 2020 (MNL): Governor of State Bank of Pakistan, Dr. Reza Baqir has said that SBP is ready to do more to shield the economy of Pakistan.
In an interview given to Bloomberg, Reza Baqir said that the State Bank of Pakistan is the most aggressive Central Bank globally this year, due to the policy responses taken by it amidst the COVID-19 pandemic.
He informed that the SBP was absolutely ready to take more action if needed.
The Governor further told that the SBP expects the economy to shrink by 1.5% in the year ending June 2020.
For emerging markets such as Pakistan, he said that the great global lockdown has been the mother of all external shocks.
“Among EM, the problem is particularly exasperated for high debt emerging markets because they have limited policy space to undertake expansionary policies”, he added.
He also said that the State Bank of Pakistan is working on several areas, and refining them in light of development.
“It is more appropriate to talk about them once we feel the situation is such that we need to do more”, he further added.
