The Minister of Finance, Muhammad Aurengzeb, said Wednesday that there was room to reduce the monetary policy rate for the end of this year.
After reducing the 1,000bps interest rate of 22 percent since June 2024 in seven intervals, the State Bank of Pakistan (SBP) has maintained it at 11 % since May. However, the business community has expressed its intense disappointment for the decision.
When addressing an event in Islamabad today, Aurengzeb said: “The monetary policy rate and the market -based exchange rate are largely the scope of the State Bank of Pakistan and the monetary policy committee.
“Having said that, in my personal opinion, I think there is room to make more in terms of policy rate, and I have a lot of hope that during the course of this calendar year, we will see the movement on the policy rate that goes to the south,” added the minister.
He pointed out that “if it was an average inflation or inflation of the nucleus,” there was room for the SBP to reduce the rate.
“National security and economic stability are correlated,” said Aurengzeb.
He took advantage of the “brave armed forces” for their success during Marka-I-Haq, the name given to the period of conflict with India in May, when Pakistan responded to the Indian aggression.
More to continue
