F.P. Report
KARACHI: Governor State Bank of Pakistan (SBP) Dr Reza Baqir said that economic future of this country is bright. He said Pakistan’s economic team is bringing financial stability in the country.
While addressing a presser in Karachi, the SBP governor said the country has nearly achieved economic stability, adding that the governments in past fetched loans from SBP however government during the next fiscal year will not borrow from SBP. Government in next fiscal year will borrow from markets, he added.
Dr Baqir hoped that country’s economic future is bright and they are satisfied with the progress to achieve financial stability.
He said depreciation leads to help improving external deficit and government taking measures to put economy on track. He further said government taking measures to reduce twin deficits, adding that less collection of tax lead to less expenses on social nets.
Dr Baqir said our main motive to reduce uncertainty and to reduce poverty in order to improve economy.
The governor SBP said in past governments interfered in the system of exchange rates, adding that our economic challenges include foreign payments and fiscal deficit. He said with devaluation of rupee the burden of foreign payments has reduced and exchange rates derived from market values will help improve exports of the country.
The governor SBP further said free float exchange rate was not our policy but based on market based demand and supply. He said they are observing the market deeply with full access on information.
He said ups and downs in the currency are due to market based exchange rates. He said exchange rate decreases as the remittances increase while rupee strengthens as the supply of dollars in the market increases.
He said all we have completed all the tasks given by IMF, adding that trust of foreign institutions increase by joining IMF program. He said IMF board meeting would be on July 3 and national interest would be put on the top.
Dr Baqir said before Eid rupee hit 152 and also saw Rs 148 level, adding that inflows surged up which helped rupee to gain.
He said rupee has been depreciated because of the seasonal factors as before June close several companies have to clear debt and these payments pressurized the rupee.
He said following the IMF board meeting all the documents would be made public. He added that historically we have seen that asset market has improved sharply. Stock market, asset and also remittances have improved, he said.
