AIRLINK 74.24 Decreased By ▼ -1.06 (-1.41%)
BOP 4.90 Decreased By ▼ -0.04 (-0.81%)
CNERGY 4.31 Decreased By ▼ -0.08 (-1.82%)
DFML 38.88 Decreased By ▼ -2.30 (-5.59%)
DGKC 85.01 Increased By ▲ 1.70 (2.04%)
FCCL 22.40 Increased By ▲ 0.75 (3.46%)
FFBL 31.50 Decreased By ▼ -0.50 (-1.56%)
FFL 9.25 Decreased By ▼ -0.17 (-1.8%)
GGL 10.05 Decreased By ▼ -0.03 (-0.3%)
HASCOL 6.76 Decreased By ▼ -0.06 (-0.88%)
HBL 113.60 Decreased By ▼ -0.40 (-0.35%)
HUBC 139.00 Decreased By ▼ -0.10 (-0.07%)
HUMNL 11.86 Decreased By ▼ -0.14 (-1.17%)
KEL 4.82 Decreased By ▼ -0.09 (-1.83%)
KOSM 4.34 Decreased By ▼ -0.02 (-0.46%)
MLCF 37.75 Increased By ▲ 0.24 (0.64%)
OGDC 131.25 Decreased By ▼ -1.60 (-1.2%)
PAEL 24.02 Decreased By ▼ -0.83 (-3.34%)
PIBTL 6.40 Decreased By ▼ -0.20 (-3.03%)
PPL 117.32 Decreased By ▼ -0.48 (-0.41%)
PRL 25.60 Decreased By ▼ -0.46 (-1.77%)
PTC 13.75 Increased By ▲ 0.03 (0.22%)
SEARL 56.44 Decreased By ▼ -0.81 (-1.41%)
SNGP 66.24 Decreased By ▼ -0.26 (-0.39%)
SSGC 10.12 Decreased By ▼ -0.12 (-1.17%)
TELE 7.96 Decreased By ▼ -0.25 (-3.05%)
TPLP 10.70 No Change ▼ 0.00 (0%)
TRG 62.00 Decreased By ▼ -0.40 (-0.64%)
UNITY 26.61 Decreased By ▼ -0.43 (-1.59%)
WTL 1.35 No Change ▼ 0.00 (0%)
BR100 7,809 Decreased By -36.9 (-0.47%)
BR30 25,148 Decreased By -107.6 (-0.43%)
KSE100 74,646 Decreased By -190.6 (-0.25%)
KSE30 23,949 Decreased By -55.7 (-0.23%)

ISLAMABAD: The monetary policy has been tightening over the past two or three years in Pakistan to control inflation, which is projected to come down but more work needs to be done on demand and supply side.

This was stated by Jason Wu, Assistant Director, Monetary and Capital Markets Department, of International Monetary Fund (IMF) while addressing a press briefing.

Wu further stated that both the supply and demand side contribute to inflation. So in that sense, policy is needed on both sides: fiscal consolidation needs to be continued and on the supply side reforms of the energy sector, state owned enterprises are required. Many economies face similar challenges as well and the Fund staff continues to engage with Pakistan on this issue, Wu added.

Pakistan and IMF discussing new multi-billion-dollar programme, finance minister says

Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF said that Pakistan is in a program; and there are really macro challenges, which include the financial sector and central bank policies but also broader macro and fiscal issues. The adjustments often take some time to take hold, Adrian added.

The Fund official further stated that some countries now have both upside and downside risks to inflation. Other countries have more upside. Others more downside risk. The key message that the Fund has to central banks is to make sure that inflation is heading durably back to target. Around the world, we do see communication by central banks that expect to cut rates, he said adding that some central banks have started to cut rates. Among advanced economies, Switzerland has started to cut rates and emerging markets started to cut much earlier. Brazil, Mexico are good examples here. “But the key is to make sure that we are durably back to inflation targets and not to sort of cut prematurely. That is really a key message,” Adrian added.

Copyright Business Recorder, 2024

Comments

Comments are closed.