(Karachi) The State Bank of Pakistan (SBP) has left the interest rate unchanged at 13.25 per cent, announced SBP Governor Raza Baqir on Tuesday.
The SBP announces a target rate every two months, which serves as the benchmark interest rate for overnight funds in the interbank market. It is one of the tools the central bank uses to ensure price stability in the economy.
Announcing the monetary policy during a press conference, Baqir said that the central bank has decided to maintain the interest rate at 13.25 per cent.
He said that a decrease is expected in the increase in inflation rate. He highlighted the inflation rate is expected to remain between 11 percent to 12 per cent. He said the amount for export schemes is being increased to 200 billion rupees.
The SBP governor said, “We will introduce a policy for small exporters soon.” The commercial exporters will be able to make an advance payment of 10,000 dollars, he stated.
The governor stressed the need to support export industries to boost foreign reserves. Raza said that the limit of LTF has been increased from Rs2.5 billion to Rs5 billion.
He said the agriculture produce is expected to remain lower than the set target. Raza Baqir said the textile industry is showing positive indicators. “When more industries will be established, it will produce more job opportunities.”
He said the rates of real estates are in range. “The economic equity in the country is improving,” he remarked. “We have brought reforms in the exchange rate system to facilitate the business community.”
Raza said that the sale of cement in the local market is also increasing which is a welcoming sign.
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