SBP keeps policy rate unchanged at 13.25
Governor says inflation rate is expected to remain between 11-12
January 29, 2020 07:44 AM
The State Bank of Pakistan has decided to keep the policy rate unchanged at 13.25 percent for the next two months.
Announcing the monetary policy decision at a news conference in Karachi on Tuesday, Governor State Bank of Pakistan Dr Raza Baqir said interest rate has not been changed as inflation rate is expected to remain at 11 to 12 percent this year. However, he said, the improvements in supply are likely to reduce the inflation rate.
He said economic stability is further improving with job creation expected to rise. He said agricultural production may not meet its target this year. He said an increase of one hundred billion rupees is being made in working capital scheme.
He said the amount for export schemes is being increased to 200 billion rupees. The SBP governor said, “We will introduce a policy for small exporters soon." The commercial exporters will be able to make an advance payment of 10,000 dollars, he stated.
The governor stressed the need to support export industries to boost foreign reserves. Raza said that the limit of LTF has been increased from Rs2.5 billion to Rs5 billion.
He said the agriculture produce is expected to remain lower than the set target. Raza Baqir said the textile industry is showing positive indicators. “When more industries will be established, it will produce more job opportunities."
He said the rates of real estates are in range. “The economic equity in the country is improving," he remarked. “We have brought reforms in the exchange rate system to facilitate the business community."
Raza said that the sale of cement in the local market is also increasing which is a welcoming sign.