Despite rising interest rates, the federal government is borrowing lots of money from commercial banks to bridge the gap between its income and expenses. And banks are happy. They are earning windfalls by investing in zero-risk government treasury bills and bonds. But the private sector is suffering as most banks cater to only large industrial/ commercial borrowers besides offering consumer loa
Earlier this year, Pakistan was closing in on technology services exports of $3 billion for FY22. The sitting IT minister even claimed we’d surpass it, and based on the growth trajectory then, there was little reason to doubt him. All hopes for dollar inflows were pinned to one sector basically, apart from the mercy of our overseas brethren. But then, the growth began to taper off. After reachi
Recently, the State Bank of Pakistan announced a 100 basis points hike in the policy rate to 16 per cent, against the market expectations of the status quo. It was done in response to the inflationary pressures, which have been proven to be stronger and more persistent than expected. For too long, we have relied solely on monetary policy to control demand and inflation to cool down the heated e
Recently, the State Bank of Pakistan announced a 100 basis points hike in the policy rate to 16 per cent, against the market expectations of the status quo. It was done in response to the inflationary pressures, which have been proven to be stronger and more persistent than expected. For too long, we have relied solely on monetary policy to control demand and inflation to cool down the heated e
Pakistan repaid a $1 billion international bond, the central bank spokesman said on Friday, amidst growing uncertainty about the country’s ability to meet external financing obligations. The country’s economy has been beset by multiple crises, including the fallout of devastating floods that killed 1,700 people, low foreign exchange reserves and decades-high inflation. “The payment (was) mad