fbpx mmnews

Economy not as bad as believed, tough monetary year ahead: Governor SBP

governor Murtaza Syed

Karachi: Interim Governor of State Bank of Pakistan (SBP) Murtaza Syed has warned that the coming 12 months will be tough for the global economy due to the rise in global commodity prices. However, Pakistan’s $33.5 billion external financing needs are fully met for the financial year 2022-23, said the interim Governor, assuring “unwarranted” market concerns about the country’s financial position will dissipate in weeks.

As per details, interim SBP Chairman Syed Murataz has said Pakistan’s economy is not as bad as people believe it is, adding the coming year would be tough on the global economy due to an increase in commodity prices.

He said that Pakistan’s debt to GDP ratio is 70%, while the foreign debt to GDP ratio is 40%. Pakistan’s internal debt is significant, but controlling them is easier, he added.

The countries that get the IMF program will be safe from the coming economic hardships.

Pakistan’s debt to GDP ratio is 70%, while the foreign debt to GDP ratio is 40%. Pakistan’s internal debt is significant, but controlling them is easier

Moreover, Deputy Governor SBP Inayat Hussain told that Pakistan’s foreign reserves are currently at $9.30 billion. The foreign reserves are not adequate as they should be enough for three months foreign payments but they are not as bad as projected, he added.

The Deputy Governor added that Pakistan will fulfil its need for dollars for the current year. Pakistan also has gold reserves of $3.80 billion, which are not included in the foreign reserves, he added.

Earlier, the acting governor of Pakistan’s central bank, Murtaza Syed told Reuters “Our external financing needs over the next 12 months are fully met, underpinned by our ongoing International Monetary Fund (IMF) program.”

Pakistan last week reached a staff-level agreement with the International Monetary Fund (IMF) for the disbursement of $1.17 billion in critical funding under resumed payments of a bailout package.

 “The recently secured staff-level agreement on the next IMF review is a very important anchor that clearly separates Pakistan from vulnerable countries, most of whom do not have any IMF backing,” he said.

Get the MMnews App now & scroll through your favourite content faster!
Comments: 0

Your email address will not be published. Required fields are marked with *