Karachi (Web Desk): The State Bank of Pakistan (SBP) has cut its policy rate by 200 basis points to 17.5%
The new monetary policy will be effective September 13, 2024.
According to a press release, the decision was made by the Monetary Policy Committee (MPC) of the bank in its meeting in Karachi today.
The MPC attributed this decision to falling global oil and food prices and a delay in the anticipated increase in administered energy prices.
Meanwhile, Prime Minister Shehbaz Sharif on Thursday welcomed the SBP’s decision to reduce the policy rate by 2%, lowering it from 19.5% to 17.5%.
He expressed optimism that this move would stimulate exports, investment, business, agriculture, and overall economic growth in the country.
While presiding over a meeting of the federal cabinet committee, the prime minister expressed hope that the policy rate could gradually decrease to single digits, in line with the country’s inflation rate.
Speaking on the ongoing discussions with the International Monetary Fund (IMF), he noted that the negotiations were progressing smoothly.
He further highlighted that, as in the past, friendly nations had once again committed to assisting Pakistan during this challenging time. With these developments, Pakistan has now met the prerequisites to secure loans from the IMF.
“Our friendly and brotherly countries have come all the way to support us again,” he said.
PM Shehbaz appreciated the ministry of finance, other concerned departments and the ambassador of Pakistan to China who played important role in getting the support from the brotherly countries.
The prime minister stressed that after achieving the goal of macro economic stability, the government will now take measures to boost GDP growth of the country.