According to the State Bank of Pakistan Governor Dr. Reza Baqir, International Monetary Fund (IMF) is working in a collaboration with the government to improve the country’s current economic infrastructure.
Speaking at the Public Accounts Committee’s meeting, Reza Baqir informed that the partnership with IMF is based on mutual interest.
Monetary Policy Committee has decided to keep the policy rate at 13.25% to facilitate the public. Furthermore, MPC termed the current policy rate as appropriate to bring down the inflation up to 5% to 7% in the coming six to eight months.
Dr. Reza Baqir remarked, “National savings rate is already very low therefore and if the people are discouraged than the country will have to borrow the money from international agencies which will raise the current account deficit.”
The government didn’t apply or take any lone from the State Bank of Pakistan due to which, the inflation is under-controlled. For the time, SBP is trying to regain the confidence of local and international investors.