Former financing minister Dr Hafeez Pasha has stated the State Bank of Pakistan (SBP) has not cut the policy rate keeping in view the nation’s real financial circumstance and the coronavirus crisis.
He stated it appeared that the main bank’s focus to improve bad financial outlook of the nation was even below acceptable, as its current forecast of 3 percent yearly growth was beyond reality.
Speaking With Pakistan Today Editor Arif Nizami in his tv show ‘Ho Kya Raha Ha’ on Wednesday, the prominent economic expert stated the decrease of 75 bps in the rates of interest would not help improve the nation’s financial circumstance.
He, nevertheless, feared that the commercial systems specifically the export market, which are currently in crisis, may jump into the classification of non-performing loans prior to shutting down.
“It’s time the central bank brings down the interest rate below 10pc on the pattern of other countries. I hope the bank will think about further reduction in interest rate in future,” Pasha recommended.
He stated the federal government still wished to not enable hot money to go outside Pakistan.
Pasha stated Prime Minister Imran, throughout his televised speech, need to have revealed a stimulus bundle and relief bundle to save the weakening financial cycle of the nation and getting worse circumstance in near future.
He notified that the worth of stock market shares had actually fallen as much as Rs1,900 billion in the last couple of days and one percent of the abundant, who typically buy stocks business, have actually seen 35 pc decrease in their yearly earnings.
He stated the share worth of Oil and Gas Regulatory Authority (OGRA), the biggest-ever leading successful public sector organisation that creates dividends worth 50 billion each year, has actually plunged 40 pc without any hope of additional dividends.
The former financing minister stated the federal government might lower inflation rate from 12.4 pc to 11 pc in the wake of record decrease in global oil costs.
According to him, the real concern is not inflation however economic crisis and the federal government need to have reduced below 10 pc.