Karachi: State Bank of Pakistan (SBP) Governor Jameel Ahmad said Pakistan is on its way to achieving macroeconomic stability as impact of policy measures is already playing out in economy.

In meeting with international investors and fund managers in an event organised by Barclays in Washington DC, he said current account deficit has narrowed and foreign exchange reserves, albeit low, were increasing, according to statement issued by central bank.

“While inflation is currently elevated, it is expected to start decelerating over next few months and with revival of International Monetary Fund (IMF) programme, uncertainty regarding external financing will also fade away,” he was quoted as saying.

According to SBP, governor also briefed participants about challenges being faced by Pakistan, its policy response and way forward for country to address such challenges.

Ahmad explained that Pakistan’s economy is witnessing high inflation and external balance of payments pressures, which are largely driven by adverse global shocks and domestic developments. SBP Governor hopeful of foreign exchange inflows in coming days

Discussing policy response in Pakistan, he informed participants that over past 18 months, SBP has raised policy rate by 1400 basis points to 21 percent. “Other measures taken to reduce demand-side pressures on inflation and current account included tightening of regulations,” Governor said.

Published in The Daily National Courier, April, 15 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.