Some reforms are yet to come in different sectors: Dr Reza Baqir

November 18, 2019 (MLN): Governor State Bank of Pakistan Dr Reza Baqir visited the Karachi Chamber for a meeting with BMG Leadership, Office Bearers and Managing Committee Members today. He discussed various issues with the chamber and other officials.

Speaking of interest rate, he said the country’s interest rate must be compared to the previous interest rates as well as other countries’ rates. Where there is a lower interest rate, there is also lower inflation.

He apprised that the existing policy rate is 13.25% and it is expected that inflation number will remain around 11-12%. He said that the decisions of monetary policy are independently taken; The MPC decides the interest rate.

He explained further if we have to decide the policy rate, then we must dissolve the committee. As long as inflation is lower, the interest rate will also go down.

He briefed that the foreign investment and the foreign reserves of SBP have been increasing.  The ease of doing business has also improved.

Regarding exports, he said that the exports of Pakistan have been increasing in terms of volume, which was reported by PBS. The textile industry in Faisalabad has started showing improvement.

Moreover, the sectors which were affected by imports, are also on the right track. The shoe industry is booming in the country, said by Governor.

Before the taxes were levied on imports for stabilizing the exchange rate, said by Dr Reza Baqir. We were worried when the exchange rate was converted into a market-based. The process of economic reforms has been started. Still some reforms are yet to come in different sectors.

Lastly, he said they expect business community would gain confidence about the reform process.

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