State Bank of Pakistan’s (SBP) Monetary Policy Committee held a meeting on Monday and decided to raise interest rates to two decade high raising it to %17 with an addition of 100 basis points to existing %16. The announcement was made by State Bank of Pakistan’s Governor Jameel Ahmed during a press conference. Monetary Policy Committee further noted that inflationary pressure is higher than the expectations and can stay longer than the expectations.
SBP Faces Criticism for Mismanagement of LCs
Mian Nasser Hyatt Maggo, the previous FPCCI president criticised SBP for not resolving the issues raised by traders. “The SBP is behaving like as if they are the World Bank or IMF [International Monetary Fund]; and, not listening to the genuine concerns of the business community,”. Further timber traders had also performed a sit in in front of State Bank of Pakistan’s building against LCs not being opened by commercial banks.
Read more: SBP is Wasting More Dollars by Holding Shipments At Port; Claims Enraged Importers
Traders also noted that banks are not completing the documentation process mendated by SBP which is causing issues for business activities across the countries. Further businessmen and importers had also alleged that steps taken by the central bank to curb imports is wasting more dollars than just the normal imports.
Also read: SBP is Wasting More Dollars by Holding Shipments At Port; Claims Enraged Importers
IMF’s Ninth Review is Critical
Monetary Policy Committee further noted that it is important for Pakistan to complete IMF program to not only avoid default risk but to increase the inflows of dollars as well as to bring the stability the markets.
