Tag Archives: interest rate

  There seems to be positive sentiment in the economy with the new government taking charge in May 2013. There are high hopes that the economy will flourish, law and order situation will improve, inflation will subside and development projects will create more jobs. The sentiment is reflected in business growth and the KSE-100 index trading at record high of 22,700 points and going strong. Despite the government approaching the …

  While announcing its monetary policy for next two months, the State Bank of Pakistan (SBP) decided last month to keep the benchmark interest rate unchanged at 10 percent. The analysts see no rationale to maintain the discount rate at 10 percent by the central bank as all fundamentals are in favor of a reduction in the interest rate. So far as inflation is concerned, the average Consumer Price Index …

  In the last Monetary Policy decision, discount rate has been maintained at 10 percent against expectations that interest rate will reduce at the back of reduction in CPI, average CPI recorded at 8.6 percent in FY14. With declining trend of inflation and projections of SBP for single digit inflation, discount rate is expected to reduce further. For FY15, CPI is expected to remain between 7.5 percent and 8.5 percent. …

  Textile sector hit hard due to high interest rate, electricity, gas outages High interest rate, political instability, deteriorating law and order situation, frequent power and gas outages and high power and gas tariffs are not only hindering growth of investment but also putting an additional burden on the country’s industrial sector apart from squeezing the gross margins of industries. In Pakistan lack of capital is a major obstacle in …

  It is often said that the fiscal and monetary policies of the country have been dictated by the multilateral lenders i.e. International Monetary Fund (IMF) and the World Bank. This statement is partly correct and partly wrong. Since the lenders give money they also want to ensure its return as per agreed schedule. Therefore, they have a major say in the formation of these two critically important policies. However, …

  Monetary policy review reduces policy rate by 100bps A dramatic cut of 100bps in policy rate for the banking industry bringing the interest discount rate from 8 percent to 7 percent indicates the firm resolve of the government to give a jump start to the economy and also an effort to become the first in financial history by reducing the rate to a historic low in Pakistan. The trade …

  The rate cut will not only give boost to local investment but can also woo foreign investors Finally, the State Bank of Pakistan (SBP) made a drastic cut of 100 basis points in the interest rate to bring it to an eight-year low of 8.5 percent for the next two months, which people hailing from trade and industry have taken positively and said it would help stimulate private sector …

  Advanced economies thrive on a well-managed system of consumer financing, which affords the pleasure of luxurious facilities without owning them. In capitalistic system, this is a win-win situation for both the users and the suppliers of goods and services. The economy benefits as demand is created for goods and services; consumer markets seem bursting at the seam as buyers, backed by the strength of consumer credit, throng to bid …