Islamabad, Aug 28: KARACHI: According to Governor State Bank of Pakistan (SBP) Jameel Ahmad, Pakistan intends to raise up to $4 billion from Middle Eastern commercial banks by the next fiscal year in order to close its external financing shortages.
The government’s frantic attempts to roll over $12 billion in loans from China, Saudi Arabia, and the United Arab Emirates are the foundation of Jameel’s optimism.
The governor of Pakistan’s central bank stated in an interview with an international wire agency on Tuesday that Pakistan was also in the “advanced stages” of obtaining the $2 billion in extra external finance needed to get the IMF to approve a $7 billion bailout program. Furthermore, according to insiders, the administration has asked Saudi Arabia for an additional $1.2 billion loan in order to close a $2 billion funding gap.
When asked about monetary policy, Jameel stated that Pakistan’s recent interest rate reductions have had the intended impact, as the country’s current account is still under control and inflation is still slowing down. In July, Pakistan’s annual consumer price index inflation rate was 11.1%, down from almost 30% in 2023’s peak. He stated, “All of these developments will be reviewed by the Monetary Policy Committee,” and that future rate decisions could not be predetermined.
The central bank will meet again to examine the monetary policy on September 12 after lowering rates for two consecutive meetings from a historic high of 22% to 19.5%. “Growth and other related areas are now our primary focus because they are equally important for job creation and other socioeconomic issues,” Jameel stated. He went on to say that the central bank’s job was to maintain financial and price stability before turning its attention to expansion.
