The State Bank of Pakistan (SBP) on Monday held its key rate at 22 per cent for the fifth policy meeting in a row.
“The MPC has decided that the current policy rate will continue,” said SBP Governor Jameel Ahmad as he began the press conference.
“The committee noted that the external account (position) has become better.”
Ahmad said despite payments of $6.2 billion, foreign exchange reserves have improved.
“Our current account deficit has also narrowed.”
“In the past six months, our reserves have increased to more than $8bn. Right now they are $8.3bn. This is despite the fact that we have repaid $6.2bn of principle foreign debt,” the governor said, adding that interest payments were also done.
“So despite all these payments, our reserves have increased by $4bn,” he said. Ahmad went on to say that the SBP’s forward book, which was at $4.5bn in July, had improved to $3.5bn.
He recalled that the current account deficit was very high in 2022 but was later contained following measures taken by the central bank and the government. “It shrunk from 4.7pc to 0.7pc and in the first six months of the current fiscal year, it is contained and stands at $800m. A similar trend is continuing in January as well,” the SBP governor added.
