State Bank of Pakistan Governor Jameel Ahmed Said that Pakistan By the end of the fiscal year Middle East wants to get four billion dollars from commercial banks, which apparently aims to Foreign exchange The gap is to be filled.
Jameel Ahmed, who will take over as Governor State Bank in 2022, told the British news agency Reuters that Pakistan International Monetary Fund (IMF) is in the ‘next phase’ of securing $2 billion in additional external financing needed to approve a new $7 billion bailout package.
Pakistan and the IMF reached an agreement in July on the new program, which is subject to approval by the IMF’s executive board. It is also subject to Pakistan obtaining timely confirmation of necessary financial assurances from development and bilateral partners.
When asked about the monetary policy, Jameel Ahmed said that the recent reduction in interest rates in Pakistan is showing the desired results in which the inflation rate is steadily decreasing and the current account is under control despite the cuts.
The annual consumer price index in Pakistan was 11.1 percent in July, reaching a peak of over 30 percent in 2023.
Jameel Ahmad said: ‘The Monetary Policy Committee will review all these developments while the future interest rate decision cannot be pre-determined.
The central bank cut interest rates for the second straight time, down from a historic high of 22 percent, to 19.5 percent when it meets again on September 12 to review monetary policy.
“Now we have to focus on development and other related sectors as these are equally important for job creation and other socio-economic activities,” the Governor State Bank added.
He added that the central bank’s mandate is to ensure price and financial stability before shifting its focus to growth.
Earlier, global rating agency Moody’s said that the Pakistan government’s recent agreement with the International Monetary Fund (IMF) should encourage other bilateral and multilateral partners to meet Pakistan’s external financing needs. However, the increase in inflation due to strict conditions will increase the tension in the society.
Last month, a staff-level agreement was reached between the International Monetary Fund and Pakistan for a seven-billion-dollar aid package for a period of 37 months.
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In this regard, the statement issued by the IMF said that this new program requires the approval of the Fund’s Executive Board, which will further strengthen Pakistan’s macroeconomic stability and conditions for more inclusive and resilient growth. will enable to produce.’
In the context of the recent agreement, Moody’s said in its report that on July 12, 2024, the prospects for funding improved from the staff-level agreement between the IMF and the Pakistani authorities for an extended funding program of about seven billion dollars for 37 months. But it will be necessary for Pakistan to maintain the reforms in order to reduce the liquidity risks.
Moody’s added that the deal is subject to approval by the IMF’s executive board, but no date has been set for a vote on it. If approved, which we expect, Pakistan’s funding prospects from the new IMF program will improve.’
According to Moody’s: ‘The program will provide funding from the IMF and encourage other bilateral and multilateral partners to meet Pakistan’s external financing needs.’
However, the report said that ‘the government’s ability to sustain the implementation of reforms will play a key role in Pakistan’s continued access to financing over the duration of the IMF program, thereby reducing the government’s liquidity risks sustainably. .’
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2024-08-28 03:18:06
