KARACHI: Pakistan has kept its main policy rate unchanged at 7%, the central bank said on Monday, as consumer price index inflation remained close to 9%.
It is the second time that Pakistan has kept its main policy rate unchanged after cutting it 625 basis points, down from 13.25%, at the time the global pandemic hit its economy in February.
"Overall financial conditions remain appropriately accommodative, with the real policy rate remaining in slightly negative territory on a forward-looking basis," a statement from the State Bank of Pakistan said, quoting the monetary policy committee (MPC), which met on Monday.
The statement said headline inflation had fallen sharply since January but remained close to 9%, primarily driven by sharp increases in food items due to supply-side issues.
However, it said core inflation remained relatively moderate and stable, and price indexes suggested a weakening of food price momentum.
"Risks to the inflation outlook are balanced," the statement said.
Pakistan's rate remained on the high side until earlier this year, at 13.25%, primarily to contain inflation, before a series of cuts to spur economic activity amidst the pandemic.
"The MPC noted that since the last meeting in September, the domestic recovery has gradually gained traction, in line with expectations for growth of slightly above 2 percent in FY21, and business sentiment has improved further."
Pakistan's central bank keeps main policy rate unchanged at 7%
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Pakistan's central bank keeps main policy rate unchanged at 7%
- It is the second time that Pakistan has kept its main policy rate unchanged after cutting it 625 basis points
- Statement said headline inflation had fallen sharply since January but remained close to 9%
Pakistan’s Sharif congratulates Bangladesh PM hopeful on ‘resounding victory’ in election
- At 60, BNP’s Tarique Rahman is preparing to take charge of Bangladesh, driven by what he calls an ambition to ‘do better’
- The election comes nearly a year and half after the ouster of Sheikh Hasina in a deadly uprising in the South Asian nation
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Friday congratulated Tarique Rahman on the “resounding victory” of his Bangladesh Nationalist Party (BNP) in parliamentary elections, saying that he looked forward to working closely with the new Bangladeshi leadership.
A year and a half after the deadly uprising that toppled Sheikh Hasina’s iron-fisted regime, the BNP said they had a won a “sweeping victory” in parliamentary elections held on Thursday.
Final results are still to come, but the United States was swift to offer its congratulations to Rahman and the BNP for an “historic victory,” its embassy in Dhaka said.
At 60, BNP leader Rahman is preparing to take charge of the South Asian nation of 170 million people, driven by what he calls an ambition to “do better.”
“I extend my warmest felicitations to Mr. Tarique Rahman on leading the BNP to a resounding victory in the Parliamentary elections in Bangladesh,” Sharif said on X.
“I also congratulate the people of Bangladesh on the successful conduct of the elections.”
Sharif’s statement also comes amid Islamabad’s efforts to rebuild relations with Bangladesh, amid a thaw in relations between the two countries. Pakistan and Bangladesh were part of the same country until Bangladesh’s secession following a bloody civil war in 1971, an event that long cast a shadow over bilateral ties.
Both countries have moved closer since August 2024, following the ouster of Hasina who was considered an India ally. While Pakistan-Bangladesh ties warm up, relations between Dhaka and New Delhi remain strained over India’s decision to grant asylum to Hasina.
“I look forward to working closely with the new Bangladesh leadership to further strengthen our historic, brotherly multifaceted bilateral relations and advance our shared goals of peace, stability, and development in South Asia and beyond,” Sharif said.
