KARACHI: Pakistan’s central bank on Tuesday further tightened its monetary stance by raising the key policy rate by 100 basis points to 9.75 percent amid rising inflationary pressure in the economy.
The State Bank of Pakistan (SBP) took the decision after the country’s inflation was recorded at 11.5 percent in November 2021, while core inflation in the urban and rural areas rose to 7.6 and 8.2 percent, respectively.
“At today’s meeting [on Tuesday], the Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 9.75 percent,” the SBP announced in a statement issued after the policy committee meeting.
“The goal of this decision is to counter inflationary pressures and ensure that growth remains sustainable,” the statement added.
The central bank said the indicators of economic activity had remained robust since its last meeting in November while inflation and the trade deficit had further risen due to high global prices and domestic economic growth.
The SBP expects inflation to average nine to 11 percent due to recent higher than expected outturns during the ongoing fiscal year. The pick-up in inflation has been broad-based, with electricity charges, motor fuel, house rent, milk and vegetable ghee among the largest contributors.
“Looking ahead, based on this momentum and the expected path of energy tariffs, inflation is likely to remain within the revised forecast range for the remainder of the fiscal year,” the statement added.
As global commodity prices retrench, administered price increases dissipate, and the impact of demand-moderating policies materializes, the central bank believes inflation is likely to decline toward the medium-term target range of five to seven percent during FY23.
On the external side, despite record exports, high global commodity prices contributed to a significant increase in the import bill. As a result, the November trade deficit rose to $5 billion based on the data provided by the Pakistan Bureau of Statistics, said the SBP.
The central bank informed the MPC expected monetary policy settings to remain broadly unchanged in the near-term.
It also maintained the economic growth during the current fiscal year was expected to be close to the upper end of the forecast range of four to five percent.
“This projection factors in the expected impact of today’s interest rate decision,” the SBP said, adding: “The emergence of the new Coronavirus variant, Omicron, poses some concerns, but at this stage there is limited information about its severity.”
The bank noted that Pakistan had successfully coped with multiple waves of the virus, which supported a positive outlook for the economy.
Pakistan's central bank raises key policy rate by 1 percent amid rising inflation
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Pakistan's central bank raises key policy rate by 1 percent amid rising inflation
- The State Bank of Pakistan further tightened its monetary stance after the rate of inflation reached 11.5 percent in November
- The central bank expects inflation to average nine to 11 percent this fiscal year due to the recent higher than expected outturns
Islamabad steps up vehicle checks to boost security as 166,000 cars get electronic tags
- Authorities say over 3,000 vehicles registered in past 24 hours as enforcement intensifies
- Extended service hours introduced to push full compliance with digital monitoring system
ISLAMABAD: Authorities in the Pakistani capital have intensified enforcement against vehicles without mandatory electronic tags with more than 166,000 cars now registered, according to data released on Sunday evening, as Islamabad moves to strengthen security and digital monitoring at key entry and exit points.
The Islamabad Capital Territory (ICT) administration introduced the electronic tagging system late last year as part of a broader effort to regulate traffic, improve record-keeping and enhance surveillance in a city that hosts the country’s main government institutions, foreign missions and diplomatic enclaves.
Under the system, vehicles are fitted with electronic tags that can be read automatically by scanners installed at checkpoints across the capital, allowing authorities to identify unregistered vehicles without manual inspections. Vehicles already equipped with a motorway tag, or m-tag, are exempt from the requirement.
“A total of 166,888 vehicles have successfully been issued M-Tags so far, including 3,130 vehicles in the last 24 hours,” the ICT administration said, according to the Excise Department.
Officials said readers installed at checkpoints across Islamabad are fully operational and are being used to stop vehicles still without tags, as enforcement teams carry out checks across the city.
To facilitate compliance, authorities have expanded installation facilities and extended operating hours. The Excise Department said m-tag installation is currently available at 17 booth locations, while select centers have begun operating beyond normal working hours.
According to Director General Excise Irfan Memon, m-tag centers at 26 Number Chungi and 18 Meel are providing services round the clock, while counters at Kachnar Park and F-9 Park remain open until midnight to accommodate motorists unable to visit during daytime hours.
Officials said the combination of enforcement and facilitation was aimed at achieving full compliance with minimal disruption, adding that operations would continue until all vehicles operating in the capital are brought into the system.
The enforcement drive builds on a wider push by the federal government to integrate traffic management, emergency response and security monitoring through technology-driven “safe city” initiatives. Last month, Interior Minister Mohsin Naqvi reviewed Islamabad’s surveillance infrastructure and said reforms in monitoring systems and the effective use of technology were the “need of the hour.”
Authorities have urged motorists to obtain electronic tags promptly to avoid delays and penalties at checkpoints as enforcement continues across the capital.
