Money, Finance and Banking Blog in Pakistan
Posts tagged Economy
SBP Prods Banks to Increase Credit Disbursement to Private Sector
Aug 1st
Syed Salim Raza, Governor State Bank of Pakistan has asked the commercial banks to increase lending to the private sector in order to provide necessary stimulus to the economy.
Mr. Raza urged the banks to take a ‘liberal view’ of the economy and play a role of a catalyst in the economic growth of the country. “Liquidity in the banking system has never been as high as it is today,” he said and added increased credit disbursement by banks will provide a stimulus to the economy.
SBP Governor acknowledged that due to the current global and domestic economic scenario the banks have More >
Monetary Policies Mismanaged by Economic Managers, says Bank Alfalah CEO
Jul 27th
Pakistan’s economic managers and architects of monetary policies were unable to understand the country’s economy and blindly followed the West and thus failed miserably, stated Chief Executive Officer Bank Alfalah, Sirajuddin Aziz.
Bank Alfalah Chief said that while trying to contain inflation, increased interest rates, following in the footsteps of the West. This strategy, however, failed and increased bank rates, causing more defaults due to the additional interest of loans.
He was speaking at the luncheon meeting at the Korangi Association of Trade and Industry (KATI) on Wednesday.
He elaborated that large banks had offered higher rates of interest, which increased the interest More >
State Bank of Pakistan Delays Monetary Policy
Jul 27th
The State Bank of Pakistan (SBP) has delayed the announcement of its monetary policy for the July-September quarter to August 15 from July 25, a bank spokesman said on Friday. No reason for the postponement was given.
The State Bank was widely expected to slash its key interest rate by 150 basis points in Saturday’s policy review, to 12.5 percent, taking account of falling inflation and the need to help the economy bounce back from recession.
Analysts said the decision was not necessarily a bad thing for markets in the long run. According to then delaying the announcement will give the SBP More >
SBP to Establish Department for Remittances Facilitation
Jul 27th
In a bid to facilitate the overseas Pakistanis, State Bank of Pakistan (SBP) will establish a new department for remittances in collaboration with the relevant ministry.
According to private television news channel on Thursday, the central bank is expected to make announcement on August 8 in this regard.
The channel quoted sources as saying that the department will function under the aegis of the SBP, Ministry for Overseas Pakistanis and Ministry of Finance.
The establishment of the department is aimed at enhancing the remittance receipts from Overseas Pakistanis. It should be noted here that the country received $7.80 billion of remittances during the More >
State Bank of Pakistan Likely to Cut Discount Rate
Jul 24th
State Bank of Pakistan is likely to cut its key interest rate sharply in a policy review on Saturday. The review will take into account falling inflation and the need to help the economy bounce back from recession.
The discount rate is now at 14 percent after the State Bank of Pakistan (SBP) cut it by 100 basis points in its quarterly review in April.
According to Aaj TV, most analysts forecast a further cut of 150 basis points to 12.5 percent this week, with expectations ranging between 100 and 200 basis points.
Annual inflation fell to 13.13 percent in June — its More >
