State Bank Governor Raza Baqir told the Public Accounts Committee that while inflation is low, interest rates will be revised, while in the current financial year, the average inflation rate will be 11 to 12%.
A meeting of the Public Accounts Committee chaired by Rana Tanveer Hussain, a member of the National Assembly and senior leader of the Pakistan Muslim League-N, where the Governor State Bank Raza Baqir gave a briefing to the members.
The Governor State Bank said in a briefing that it is certain that if inflation goes down, interest rates will be revised and the Monetary Committee decides to revise the interest rate based on the inflation situation.
During the briefing, Pakistan Peoples Party (PPP) Senator Sherry Rehman questioned how much of the IMF was involved in our policies, to which the Governor State Bank said that the IMF was a partner in the process of economic reform. Take something with them and some two.
He said that the average inflation rate will be 11-12 per cent during the current financial year, whereas the recent increase in inflation was temporary which was affected by supply, besides the depreciation of the rupee.
He said that in a year and a half the dollar rose from Rs. 105 to Rs. 162. If the value of rupee falls, imports become expensive. Exchange rate and interest rate are linked.
For several months, foreign currency account holders have been switching to rupee saving accounts, the Governor State Bank said.
Regarding the value of the rupee, he said the value of the rupee has stabilized after July while the exchange rate has been made on the basis of the market.
He said that when the government started the process of reforms, the treasury was empty but in the last eight months, foreign exchange reserves increased by $ 9.5 billion and during this period, one billion dollars was paid.
Raza Baqir said that if foreign exchange reserves increase, there would be no need to spread their hands and the treasury would not be empty, then no one would have to go to the World Monetary Fund (IMF).