Monetary Policy: Discount rate kept constant at 12.5%
The State Bank has kept discount rates at rate 12.5% for the next two months.
The Governor of State Bank, Saleem Raza announced the monetary policy for the next two months. He announced that the agriculture sector would improve and growth rate of large scale manufacturing was recorded at 0.7%. The recovery on global front would also have positive impact on Pakistani Economy. Foreign remittance for the first six months was recorded at $4.5 billion which has lead to decrease in current account deficit, which stands at 3.4%.
Saleem Raza also informed that government has taken limited loans from the State Bank. IMF installment would enhance the schedule of payments. By June 2010 the foreign exchange reserves would reach to $15 billion. Inflation is expected to remain in double digit for two months.
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