ADVERTISEMENT
Wednesday, July 30, 2025
No Result
View All Result
The AZB More Than Just News
  • HOME
  • Latest News
  • Business
  • PAKISTAN
  • SPORTS
  • WORLD
  • E-Paper
  • SCI-TECH
  • BANKING
  • ARTICLES
  • OPINION
  • MORE
    • MOBILE
    • TELECOM
    • PERSONALITY
    • HEALTH / EDUCATION
  • HOME
  • Latest News
  • Business
  • PAKISTAN
  • SPORTS
  • WORLD
  • E-Paper
  • SCI-TECH
  • BANKING
  • ARTICLES
  • OPINION
  • MORE
    • MOBILE
    • TELECOM
    • PERSONALITY
    • HEALTH / EDUCATION
No Result
View All Result
Daily The Azb
No Result
View All Result
Home Headline

FPCCI advocates maintaining Status Quo on Policy Rate

News Desk
December 11, 2021
FPCCI clarifies that it opposes mandatory digital payments.
Share on FacebookShare on Twitter
Advertisements

KARACHI – Mian Nasser Hyatt Maggo, President FPCCI, has proposed that the State Bank (SBP) of Pakistan should not further increase the Monetary Policy Rate as it can result in stagflation and adverse effects on industrial growth. He said that the use of the instrument of Policy rate for controlling inflation has been counter-productive as Pakistan’s economy is less integrated with the financial sector. He was basing his recommendation on the evidence-based findings of the latest Monetary Policy Brief released by the Policy Advisory Board of FPCCI.

The Policy Advisory Board of the FPCCI working under the Chairmanship of the former Federal Secretary Mohammad Younus Dagha has published a policy brief titled ‘Assessment of Monetary Policy Effectiveness in Pakistan’ which formulates FPCCI’s input for the upcoming monetary policy. The paper gives insight into the causes of inflation and the effectiveness of monetary policy based on the analysis of economic fundamentals, business cycle positioning, and the monetary policy survey for which the respondents were economists, financial market participants, and industry representatives.

Advertisements

The report finds that only 7 percent of the commercial entities do actually borrow from the banking and financial system of the country; and, this fact renders the monetary tightening for inflation control and management through increasing policy rate ineffectual and restricts its efficacy as a tool.

The report warns that Pakistan is heading towards stagflation with inflation mounted to 11.5 percent whereas the core inflation was recorded at 7.6 percent in November 2021. The State Bank of Pakistan (SBP) increased the policy rates by 25 basis points and 150 basis points during the Monetary Policy Committee (MPC) meetings held in September and November 2021 respectively. This has created a speculative momentum that raised cut-off yields by 228 basis points for three-month T-bills to 10.78 percent. It is imperative to note here that supply shocks such as a hike in commodity and oil prices provided the impetus for current inflationary pressure. In addition, massive depreciation of the Pakistani rupee against the US dollar along with measures under the IMF Program has aggravated inflation further. Although the real interest rate is negative in Pakistan, however, the difference between policy rates and core inflation is higher in Pakistan i.e. 1.2 percent as compared to India (-1.8%), China (0.7%).

The Policy Advisory Board of FPCCI recommends that the SBP to target core inflation rather than general inflation. Moreover, inflationary pressure can be better controlled by shifting the exchange rate regime from flexible to a managed float. Government should also use regulations and effective enforcement to counter speculations and manipulations by cartels that are playing havoc with the prices and exchange rates.

Advertisements
News Desk

News Desk

Welcome to our web desk! We're a dedicated team of digital enthusiasts passionate about delivering timely and engaging content to our online audience.

Related Posts

Qatar Airways Expands Saudi Network with New Abha Flights and More NEOM Options.
Business

Qatar Airways Unveils Global Winter Schedule, Increasing Flights to Over 15 Destinations Including Up to 10 Daily Flights to London Heathrow

July 30, 2025
CCP Enforcement Gains Pace: 223 Cases Resolved, PKR 360m Recovered
Business

CCP Enforcement Gains Pace: 223 Cases Resolved, PKR 360m Recovered

July 30, 2025
From Karachi Roads to Coastal Rides with Temu in the Pack
Business

From Karachi Roads to Coastal Rides with Temu in the Pack

July 30, 2025
Environment conference demands full provincial autonomy to fight environmental degradation
Business

Environment conference demands full provincial autonomy to fight environmental degradation

July 30, 2025
Cadence Design Systems Agrees to Plead Guilty and Pay Over $140 Million for Unlawfully Exporting Semiconductor Design Tools to a Restricted PRC Military University
Business

Cadence Design Systems Agrees to Plead Guilty and Pay Over $140 Million for Unlawfully Exporting Semiconductor Design Tools to a Restricted PRC Military University

July 30, 2025
KYRGYZ DELEGATION LED BY DEPUTY PM EDIL BAISALOV VISITED KPT
Business

KYRGYZ DELEGATION LED BY DEPUTY PM EDIL BAISALOV VISITED KPT

July 30, 2025
SABS UNIVERSITY JAMSHORO ELECTS MEMBERS FOR STATUARY BODIES
Headline

SABS UNIVERSITY JAMSHORO ELECTS MEMBERS FOR STATUARY BODIES

July 30, 2025
Pakistan Flood Relief Initiative Launched by Houston-Karachi Sister City Association, Alliance for Disaster Relief, and Helping Hands for Relief & Development
Business

Pakistan Flood Relief Initiative Launched by Houston-Karachi Sister City Association, Alliance for Disaster Relief, and Helping Hands for Relief & Development

July 30, 2025
Boston Health AI Launches Hami: The World’s First AI-Powered Physician Assistant for End-to-End Patient Care
Business

Boston Health AI Launches Hami: The World’s First AI-Powered Physician Assistant for End-to-End Patient Care

July 30, 2025
Headline

DHS Launches ‘Defend the Homeland’ Nationwide to Recruit Patriots to Join ICE Law Enforcement and Remove Worst of the Worst from U.S. 

July 30, 2025
Next Post
Telenor Pakistan champions in Diversity and Inclusion

Telenor signs License Renewal Template to reiterate commitment to customers

Leave a Reply Cancel reply

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


Most Popular

PM Youth Laptop Scheme 2025: HEC Releases Merit List – Check Your Eligibility Online Now!

Yinyleon & her husband most viewed amateurs 2022 on adult site.

Reckitt Benckiser (RB) & partners to revolutionize access of health & hygiene across 1 million rural households, backed by the UK Government

Mehwish Salman Ali Elected President of CxO Global Forum USA Chapter

Hisaar Foundation at the UN

Must Read

A letter to the president of United States
WORLD

A letter to the president of United States

May 18, 2022
Pakistan cricketers express best wishes for ‘javelin hero’ Arshad Nadeem
Headline

Pakistan cricketers express best wishes for ‘javelin hero’ Arshad Nadeem

August 5, 2021
The Azb is a 24/7 online news platform that covers a wide range of topics including business, economics, technology, finance, travel, fashion, and lifestyle.

Quick Links

  • Home
  • About us
  • SCI-TECH
  • Live TV
  • Banking

Useful Links

  • Videos
  • Reviews
  • Advertorial
  • Photos
  • About us
  • Author
  • Home
  • Latest News
  • Partner
  • Privacy Policy
  • Russian Theatre Group Celebrates Fifth Anniversary in Pakistan.
  • Terms and Conditions
  • The Azb – More Than Just News
  • Contact

© Copyright 2024 theazb. All Rights Reserved.

No Result
View All Result
  • HOME
  • Latest News
  • Business
  • PAKISTAN
  • SPORTS
  • WORLD
  • E-Paper
  • SCI-TECH
  • BANKING
  • ARTICLES
  • OPINION
  • MORE
    • MOBILE
    • TELECOM
    • PERSONALITY
    • HEALTH / EDUCATION

© Copyright 2024 theazb. All Rights Reserved.