MONETARY POLICY OF PAKISTAN

 

State bank has announced recent monetary policy due to rift in current account deficit with exports. It overshadows the focus on the expansion in growth sector rather than on the debilitating situation at external sector. There is no denying from this fact that overall growth rate of the economy has improved manifold. however, banking sector depicts and shed light on the bright side for upbeat in activities. Whereas, the real and grim picture has been pointed for external sector. The state bank has stance for the justification in this regard as steep rise in the inflows to widen the spectrum of foreign exchange reserves. Thus, smooth rise in the foreign direct investments and export earnings gives currency to this idea. Moreover,  a slight increase in inflation has also been witnessed in economy owing to fluctuation in the oil prices along with the surge in demand. For this purpose, anticipated expenditure for upcoming election year is a stumbling block in the growth of economy as monetary expenditure going to sore owing to inflation. There is nothing to do with surge in global demand for prospective future in post- CPEC era, Historical accounts of Musharraf regime has witnessed the similar situation for the halt in overall growth process. Government has made tall claims for the robust in growth from the low- growth and low inflation equilibrium which has nothing to do with reality.