Interest rates remain unchanged at 11 percent, foreign exchange increases by $5 billion: Governor State Bank

Karachi: Governor State Bank Jamil Ahmed has said that after a detailed examination of economic indicators, it has been decided that the policy rate will be maintained at 11 percent. He said while holding a press conference in Karachi that the inflation rate is currently 7.2 percent and there has been a slight increase in it in May and June.

According to the Governor of the State Bank, remittances have crossed $38 billion, while in the last fiscal year it was around $30 billion. He said that exports have recorded a 4 percent increase and remittances in the current fiscal year may exceed $40 billion.

He said that in the last fiscal year, all payments were made on time and foreign exchange reserves increased by $5 billion, while the economic growth rate (GDP Growth) was 2.7 percent.

Talking about future expectations, Governor SBP Jamil Ahmed said that with the improvement in the agricultural sector, the growth rate is likely to be between 3.25 and 4.25 percent in the current fiscal year.

He warned that the trend of increasing energy prices may continue, which may temporarily increase inflation, however, the annual inflation rate is expected to be between 5 and 7 percent.