On 28th May 2021, the State Bank Monetary Policy committee meets for the second time in 2021 to see the need for changes in Monetary Policy for the ongoing fiscal year. The committee decides to keep the policy rate unchanged. In last year due to the covid situation, the State Bank Monetary Policy Committee decided to lower down the Policy Rate that was then prevailing to 13.25% to 7 %.
It was done by the State Bank Monetary Policy committee to cover the impact of Covid-19 on the country’s economy and GDP growth.
Govt in time decision bringing fruitful results as it caused the GDP growth to reach 3.97% which is much higher than the local and international organizations exectations.
Now the GDP growth rate for the next fiscal year 2021-22 has been set as 4.8%
Since January 2021, Inflation rose to 11.1%.
State Bank foreign reserves are also improving and now they are reached more than 15 Billion US dollars.
This is made possible due to overseas Pakistanis big contribution towards Pakistan foreign reserves as they have been sending dollars to Pakistan through legal channels. Govt also made conscious efforts to break down the Hawala Hundi channels which were a big source of absorption of overseas remittances.
State Bank also introduced a tailor-made bank account for overseas Pakistanis named as Roshan Digital Bank Account. This RDA account received much appreciation from the overseas Pakistanis and they have been sending their remittances to this account and now this account has crossed a big milestone of $ 1 Billion.
The Pakistani economy is now in a take-off position and hence the approaching budget of the fiscal year 2021-22 is a much-anticipated budget in terms of better policies for the betterment of the general public.
The Policy rate of State Bank’s timely reduction added positivity to financial growth in Pakistan.
Now the Pakistan stock exchange performing at the highest peak and daily billions of shares are being traded. Pakistani currency is performing better with respect to all the major currencies of the world.
Pakistani GDP growth has astonished everybody and now the Govt seems more confidant as it looks like Govt timely decision for the betterment of the economy are giving results now