Governor State Bank of Pakistan (SBP) Raza Baqir expressed optimism saying that Pakistan’s financial woes are about to end. He was of the view that the situation would soon return to pre-coronavirus levels.
Talking to local media, Baqir said that Pakistan is going through a historic economic crisis. If interest rates were not low, people would be in trouble. Inflation has nothing to do with rising demand. We have controlled rising prices.
SBP Governor said that the increase in foreign exchange was due to reduction in current account deficit. The amount of funds we received from friendly countries, were all use for debt payment. Exports increase the current account deficit. Interest rates have been reduced to 7pc, he said.
Baqir termed the coronavirus pandemic as a big challenge and said that many people became unemployed after Covid-19. The closure of restaurants and shopping centers affected the income. However, the SBP scheme managed to control unemployment.
SBP Governor said that Pakistan economy was improving before the pandemic. He said that the central bank taken several steps to save the economy from coronavirus.
He was of the view that the current inflation is due to supply constraints. The current account deficit was reduced from $13 billion to $3 billion.