Monetary policy announced, interest rate maintained at 22 percent

State Bank of Pakistan (SBP) announced the monetary policy. The central bank has decided to keep the interest rate at 22 percent.

While holding a press conference in Karachi, State Bank Governor Jameel Ahmad said that the foreign exchange reserves have reached 8.3 billion dollars, the external account situation has improved.

Jameel Ahmad said that the current account deficit was 17 billion dollars in 2022.

He said that the pressure of inflation still remains, the effect of energy prices on inflation is important.

Governor State Bank said that the interest rate will remain at 22 percent, the interest rate will be reviewed again in March.

He said that inflation will be 23 to 25 percent this fiscal year while GDP rate will be 2 to 3 percent this fiscal year. Due to industrial and agricultural development, GDP will be better.

Jameel Ahmed said that large scale manufacturing has improved. There has been a decrease of 400 billion rupees in circulating notes.

The governor of State Bank said that after March, the rate of inflation will decrease, the decrease in inflation in the coming months will be due to the strict interest rate policy, there is a possibility of a decrease in the prices of oil and commodities in the global market.

He said that our monetary policy trend will remain strict, no level of monetary policy is determined by us from the IMF.

Jameel Ahmed said that our monthly imports have increased by about 800 million dollars, the real import demand is being met.