SBP Says Concerns About Pakistan ‘Unfairly Overblown’
Despite currency and stock market panic over the country’s economic situation, State Bank of Pakistan (SBP) Acting Governor Dr Murtaza Syed stated that Pakistan is still in a position to meet its increased funding needs, and that the critical International Monetary Fund (IMF) bailout program “puts a lot of daylight between Pakistan and more vulnerable countries.”
“Concerns about Pakistan are being exaggerated,” Dr. Syed was quoted by Bloomberg as saying. “The recently secured staff-level agreement on the next IMF review is a very important anchor that creates a significant gap between Pakistan and more vulnerable countries.”
His remarks come as the local currency fell nearly 7.5 percent in one week against the US dollar, closing near the 227 level on Thursday, amid renewed concerns about inflation and the cost of doing business. This was the rupee’s fifth consecutive decline, all of which occurred after the IMF announced the staff-level agreement.
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