Pakistan’s central bank to discuss financial situation, review historically high policy rate today

The logo of the State Bank of Pakistan (SBP) is pictured on a reception desk at the head office in Karachi, Pakistan July 16, 2019. (Photo courtesy: REUTERS/FILE)
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Updated 12 June 2023
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Pakistan’s central bank to discuss financial situation, review historically high policy rate today

  • Monetary Policy Committee last met in April to raise the key interest rate by 100 basis points to curb mounting inflation
  • Surging consumer prices have become serious concern for the government which has been criticized for the new budget

ISLAMABAD: Pakistan’s central bank is scheduled to convene a meeting today, Monday, to review the country’s overall financial situation before making any decisions about the policy rate.

The State Bank of Pakistan’s Monetary Policy Committee last met on April 4 when it raised the key interest rate by 100 basis points, bringing it to the highest-ever level of 21 percent, in an effort to control spiraling inflation.

Prior to that, the bank had increased the key rate by 300 basis points, raising the policy rate from 17 percent to 20 percent in a surprising move.

“The Monetary Policy Committee of SBP will meet on Monday, June 12, 2023, at SBP Karachi to decide about the Monetary Policy,” said an official statement released last week.

“The SBP will issue the Monetary Policy Statement through a press release on the same day,” it added.

Pakistan is currently facing significant economic challenges, including depleting foreign exchange reserves and a weakening national currency. The country has presented its new budget for the next fiscal year, although independent economists have criticized it as an inflationary plan, noting a lack of solid poverty alleviation measures.

The surging consumer prices in the country have become a serious concern for the government, especially after incidents earlier this year where more than a dozen people were killed in stampedes while trying to obtain rations.


Four policemen, seven militants killed in separate clashes in northwest Pakistan

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Four policemen, seven militants killed in separate clashes in northwest Pakistan

  • Pre-dawn assault on Bannu police post repelled, three militants killed
  • Four officers killed in ambush during operation in Dera Ismail Khan

PESHAWAR: Seven militants and four policemen, including a senior officer, were killed in two separate security engagements in Pakistan’s northwestern Khyber Pakhtunkhwa province, police officials said on Wednesday.

The incidents occurred in the Bannu and Dera Ismail Khan districts bordering Afghanistan, areas that have seen a resurgence of militant attacks in recent years, particularly by the Tehreek-e-Taliban Pakistan (TTP), which frequently targets police posts and security forces.

Islamabad has repeatedly accused the Afghan Taliban authorities of allowing militant groups, including the TTP to operate from Afghan territory and stage cross-border attacks, an allegation Kabul denies. The dispute has strained ties between the two neighbors and fueled security tensions along the frontier.

In the first incident, three militants were killed after police repelled an overnight assault on the Khunia Khel police post in Bannu district, which borders Afghanistan.

Aamir Khan, spokesperson for the Regional Police Officer in Bannu, said heavily armed militants launched a pre-dawn attack in what appeared to be an attempt to overrun the facility. Police personnel stationed at the post returned fire.

“The officers displayed exceptional valor and professionalism, putting up fierce resistance against the terrorists and compelling them to withdraw,” Khan told Arab News by phone.

He said three militants were killed and nine others wounded in the clash, while one police officer sustained minor injuries. One of the slain attackers was identified as commander Umar Azam, also known as Khazmati, while another was named as Shahidullah. The identity of the third militant was being confirmed, he added.

Hours later, militants launched what police described as coordinated retaliatory attacks on the Ahmadzai Police Station and the Fateh Khel police post. Security personnel repelled both assaults without further casualties, according to Khan.

DERA ISMAIL KHAN 

In a separate operation in the Panyala area of Dera Ismail Khan district, four militants and four police officers were killed during a security operation and subsequent ambush, district police spokesperson Yaqoob Khan said.

The operation was launched after intelligence reports about militant presence in the area. It was led by senior officers, including the Superintendent of Police (SP) for the Counter-Terrorism Department, the SP of Paharpur, Deputy Superintendents of Police from Paharpur and Panyala, and several Station House Officers.

Police surrounded suspected militants during the operation. As officers were returning, they were ambushed from nearby forested terrain, triggering an exchange of gunfire.

“Four police officers were martyred and four terrorists were killed in the ensuing firefight,” Khan said.

Among those killed was Station House Officer Faheem Mumtaz Khan. SP Paharpur Iqbal Baloch, DSP Paharpur Muhammad Adnan and two other officers were injured and shifted to hospital for treatment.

Authorities cordoned off the area and launched a search operation in nearby forests.

Khyber Pakhtunkhwa Chief Minister Sohail Afridi condemned the attack in Dera Ismail Khan and expressed “deep sorrow and grief” over the deaths of the police personnel.

“Such cowardly acts of terrorism cannot undermine the morale of the police, nor will attempts to sabotage peace in the province succeed,” he added, calling for a coordinated national strategy to eliminate militancy.

No group immediately claimed responsibility for Wednesday’s attacks.