State Bank of Pakistan (SBP) Governor Reza Baqir admitted that Pakistan market was going through a recession phase.As per reports, the SBP Governor said that the foreign reserves increase last week was not because of a single factor, but because of opinion advancement and lowering forward publication liabilities.
Pakistan economy undergoing slowdown, Governor SBP admits
Baqir informed that he has resigned from the International Monetary Fund’s (IMF) administration
Talking about the high interest rate, Baqir said that high interest rates were because of unabated inflation. “When inflation rate will rise, we’ll review interest rates”, he said. The governor admitted that there have been several structural faults behind increasing inflation, which are being addressed.Talking about Saudi petroleum facility, the SBP leader said that the Saudi oil facility is transparent i.e.
Total imports are revealed in current account, and facility is revealed in financial account.Baqir advised that he has resigned in the International Monetary Fund’s (IMF) administration, and is currently only operating for Pakistan.
Before the appointment as SBP Governor, Baqir was working from the IMF as senior resident representative to Egypt.Earlier, it was learnt that the federal administration’s non-tax earnings decreased sharply, i.e., 44 percent throughout FY19, mainly because of a steep decrease from the SBP gain.
The SBP gains have lately become an important revenue source for the authorities, as these have comprised nearly one third of non-tax earnings over the past five years.On a lighter note, the SBP chief asked journalists not to ask question on costs of vegetable.