The State Bank of Pakistan (SBP) has decided to hike the policy rate by 100 basis points (bps) to 21 per cent, its highest-ever level, according to a press release issued on Tuesday. The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC). “The MPC noted that inflation in March 2023 rose further to 35.4pc, and is expected to remain high in the near term. However, the
Former central bank chief Dr Reza Baqir said on Tuesday debt restructuring for Pakistan will be “very difficult as a process” given that most of its foreign loans are “very hard to restructure”. “All the warning signs are there that the process will be difficult because of the type of debt that dominates on the balance sheet of Pakistan,” said Dr Baqir who stepped down as governor of the State
While slamming another 100 basis points hike in the benchmark interest rate to a record 21 per cent, the business community on Tuesday questioned the government’s approach of fighting inflation by jacking up lending rates saying the strategy has failed to produce desired results but slowed down economic activities. “The entire business community has refused to accept the 100 basis points hike i
The World Bank on Tuesday projected about four million people falling below the lower middle-income poverty line amid economic growth plummeting to just 0.4 per cent against a budgeted target of 5pc. Meanwhile, the Asian Development Bank (ADB) has forecast Pakistan’s economic growth plunging to 0.6pc from 6pc last year owing to the prevailing political crisis, flood-oriented economic losses, fo
Share prices rose initially on Monday, but pessimism soon overpowered the bulls and drove down the representative index of the Pakistan Stock Exchange. Arif Habib Ltd said a lack of investors’ involvement pushed the index into the red territory soon after the opening bell rang. Trading remained subdued for the rest of the session with prices swinging in both directions before closing on the low