Table of Contents

State Bank’s Recent Policies Made Pakistan’s Economy Worse

ISLAMABAD, January 31, 2023- According to the Economic Advisory Group(EAG), the State Bank of Pakistan (SBP) dollar cap, and policy rates have aggravated the economic crisis, and substantial reforms are needed to promote sustainable growth instead of policies that cause economic instability.

EAG stated in a news release that SBP maintained a considerably negative real interest rate during FY 2022-23 despite the need to lower the external financing gap to a more sustainable level. Pakistan’s forward-looking real interest rate at the start of FY23 was around -7 percent. It was a global anomaly.

According to the International Monetary Fund (IMF) October 2022 Financial Stability Report, Latin America’s forward-looking short-term median real interest rate had grown to 5%. Asia’s median real rate was 1-3 percent. According to Bloomberg, Pakistan had the second-lowest real interest rate in South East Asia in July 2022.

Read More: Solar Industry Likely to Be Exempted From All Taxes

Despite some misgivings, the EAG approved the 2021 law that gave the SBP more power and established inflation targeting as the monetary policy regime. The SBP has failed to stabilize inflation at 5-7 percent. The SBP’s forecasters’ long-term inflation expectations remain unanchored at close to 9 percent. Long-term government bond yields imply even larger inflation predictions. This implies that the SBP will fail its medium-term inflation objective.

The EAG recognized the need for fiscal-monetary collaboration to achieve macroeconomic goals. It also believed the SBP had failed to use its parliament-granted authority to fulfill its mandate. By keeping the exchange rate from fully correcting without supporting it with an appropriate interest rate stance, the SBP contributed to the instability it was supposed to avert. The EAG found that transparency from the inflation targeting regime’s stated inflation objective holds the central bank accountable.

To get more news on Real Estate and infrastructure developments, please contact 0331 1110005 or visit 

Al Sadat Marketing is a real estate firm located in Islamabad & Rawalpindi in Pakistan. With over 7+ Years of experience, Al Sadat Marketing Company is providing its services to all trending societies in Islamabad and Rawalpindi.

Al Sadat Marketing

0331 1110005

Head Office: First Floor, Yasin Plaza, Blue Area Main Jinnah Avenue, Islamabad

You can also invest in other famous and most in demand housing societies, such as , Blue World City,  Rudn Enclave7 Wonders City PeshawarTaj ResidenciaKingdom Valley,  New Metro City Gujar KhanForest Town RawalpindiUniversity Town RawalpindiICHS TownPark View City IslamabadMulti Gardens B17 Islamabad and Nova City Islamabad.

Al Sadat Marketing please contact 0331 1110005 or visit

Few more real estate housing schemes which are trending now a days in Islamabad by including: Faisal Town Phase 2Prism Town Gujar KhanNew City ParadiseEighteen Islamabad7 Wonders City IslamabadCapital Smart City,  Silver City IslamabadThe Life Residencia,  Faisal Town IslamabadIslamabad Golf CityIslamabad Model Town and Marble Arch Enclave.

Al Sadat Marketing is an emerging Real Estate Agency headquartered in Islamabad, Pakistan. With over 10+ Years of experience, Al Sadat Marketing is providing its services and dealing all trending housing societies projects in different cities of Pakistan. Islamabad Projects, Rawalpindi Projects, Gujar Khan Projects, Burhan Projects, and Peshawar Projects etc.

Book Your Plot Now: +92 331 111 0005

Tags :

Share :

About Author
About Author

Syed Sadat Hussain Shah

Leave a Reply

Your email address will not be published. Required fields are marked *