Karachi: The State Bank of Pakistan has decided to maintain the interest rate at 11%. Addressing a press conference in Karachi, Governor SBP Jamil Ahmed said that this decision was taken keeping in mind all economic indicators.
He said that inflation increased slightly in May and June, but on an annual basis it remained at 7.2%. According to him, energy prices are expected to increase in the future, which may increase temporary pressure on inflation.
Giving a glimpse of economic improvement, Governor SBP Jamil Ahmed said that remittances in the last fiscal year were more than $38 billion and this year they may cross the $40 billion milestone.
He said that foreign exchange reserves increased by $5 billion, while exports recorded a 4 percent increase. Regarding the growth rate, the Governor of the State Bank said that the growth rate of the economy in the current fiscal year is expected to be between 3.25 and 4.25 percent.
He added that the improvement in the agricultural sector will lead to stability in the economy, while policymakers should keep energy, imports and the fiscal balance at moderate levels so that inflation remains under control.
