Structural impediments challenge Pakistan’s macroeconomic stability: SBP

Structural impediments are challenges to sustaining macroeconomic stability, the State Bank of Pakistan (SBP)’s annual report on the state of the economy said on Thursday. “Falling investment … unfavourable business environment, lack of research and development, and low productivity, alongside climate change risks continue to constrain the economy’s growth potential,” the SBP said in a statement. Additionally, the central bank noted that “longstanding inefficiencies in the energy sector have resulted in the accumulation of the circular debt”. “While the government has started to address energy sector challenges through substantial price adjustments, there is a need to broaden the scope of these efforts by introducing sectoral policy and regulatory reforms,” it said.