Articles for tag: central bank autonomy., economic strategy, fiscal policy, high, high interest environment, independent, Inflation, inflation control, interest rates, Monetary Policy, Pakistan's economic challenges, price, private sector investment, SBP, state bank of pakistan, supply-side inflation, tax reforms

September 2, 2024

Islamabad: When parliament granted autonomy to the State Bank of Pakistan (SBP) in 2021, the central bank’s core mandate shifted from managing GDP growth to controlling inflation – however, over the past three years, the SBP has failed to achieve this. forehead. Despite the manipulation of interest rates and the implementation of other policy tools, inflation remained stubbornly high, consistently exceeding single-digit levels. While the SBP has responded to inflation, the expected effects on inflation rates from these policies have not materialized. There appears to be a disconnect between the bank’s actions and actual inflation outcomes. With inflation and interest

July 2, 2024

News Desk

International

addressing the challenges of debt, inflation and productivity

Britain’s economy is under incredible pressure, more than you might imagine. Austerity and two successive and costly crises have left the UK with huge debt. Compared to other major advanced economies, the UK’s national debt has risen more since COVID-19. Rising debts and tax revenues Borrowing is not the only issue. Tax revenue as a percentage of GDP – the share of the country’s output that the government takes to pay for public needs – is almost as high as in wartime. This is a huge problem for the current government in an election year, especially when public services need

May 27, 2024

News Desk

Business

Pakistan’s fiscal policy at a crossroads

Islamabad: Fiscal policy in Pakistan is usually far from a fine balancing act and is more of a reckless feat. It has long been characterized by a contentious debate between austerity measures and stimulus measures – with the government oscillating between these two approaches, often recklessly. Thanks to these policies, the past three years have been marked by high interest rates – a result of the State Bank of Pakistan’s (SBP) battle with inflation that has crushed the real estate market and pushed up unemployment numbers. But why Pakistan’s policy rate should be as high as 22% for so long

May 23, 2024

News Desk

Business

The uncertainty that is a major contributor to inflation: SBP

KARACHI: Pakistan’s central bank said political and economic uncertainty played a leading role in driving inflation to a multi-decade high, while commodity prices surprisingly had a positive impact on recent inflation readings in the country. In its study titled “Inflation Dynamics in Pakistan: Determinants and Structural Challenges”, the State Bank of Pakistan (SBP) said: “The change in global commodity prices also had a positive and significant effect on inflation between 2006 and first half (first half of) FY24.” “In recent years, uncertainty has increasingly been seen as an important factor contributing to inflation.” The study presented a chart showing that

April 30, 2024

News Desk

Business

The government is implementing sweeping fiscal reforms to reduce debt

Islamabad: The federal government on Monday announced new fiscal rules to reduce its debt servicing costs by gradually tapping trillions of rupees of public money that ministries and departments have parked in commercial banks. The Ministry of Finance issued new Cash Management and Single Cash Account Rules in order to capture the data and money that was sitting in the interest-free private bank accounts of government agencies in the first phase. The International Monetary Fund (IMF) has long pushed to bring public money back to the State Bank of Pakistan (SBP) by withdrawing it from commercial banks. However, various entities,

February 11, 2024

News Desk

Business

PDM’s financial management led to a sharp increase in per capita debt

Photo: Tribune Creative Islamabad: A new legally mandated fiscal policy statement has revealed the worst financial management by Pakistan’s Democratic Movement coalition government, resulting in spending over Rs2.2 trillion over budget and a 25% increase in the debt burden for every citizen. The Finance Ministry’s Fiscal Policy Statement 2024 showed a sharp increase in debt in the fiscal year 2022-23, the period when the PDM ruled Pakistan. The debt of each citizen rose by 25.2% to Rs 271,624 by the end of the previous financial year. In absolute terms, each person’s debt rose by Rs 54,500 in a year, the

Is high inflation the price for an independent SBP?

addressing the challenges of debt, inflation and productivity

Pakistan’s fiscal policy at a crossroads

The uncertainty that is a major contributor to inflation: SBP

The government is implementing sweeping fiscal reforms to reduce debt

PDM’s financial management led to a sharp increase in per capita debt

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