Approached IMF due to weak economic conditions, says Baqir

Governor State Bank of Pakistan (SBP) Dr. Reza Baqir has said that they were compelled to approach the International Monetary Fund (IMF), due to a worsening economic situation of the country.

In an interview with a private TV channel, Baqir said that when we went to the IMF, the economic situation was bad. “We had to seek the support of IMF because of weak economic condition,” he said.

He said SBP will implement those policies which benefit the economy of Pakistan. Talking about the priorities, the SBP chief said that their focus is to save people's jobs, adding that they will talk to the IMF keeping this in mind.

Baqir said the monetary policy adopted by the central bank is supporting the economy of Pakistan.

On coronavirus pandemic, SBP Governor said that the government and the State Bank had taken steps in the first and second wave of coronavirus.

During the Covid-19 pandemic, he said the government had to lift loans from IMF amounting to Rs250 billion. Appreciating the steps taken by Pakistan Tehreek-e-Insaf (PTI) government to avert the coronavirus pandemic, he said that the SBP and the ruling party had successfully managed to cope with the difficulties arising due to the spreading virus that played havoc around the world.

Talking on inflation and policy rate, the Governor SBP said that the increase in electricity rates also led to inflation while the policy rate was not 13 percent for the first time in Imran Khan's government, the policy rate was kept at 13pc in 2008 and 2010 as well.

Baqir said that they do not see an increase in interest rates in the near future. “If we have to raise interest rates, we will do so in a gradual manner.”

The Governor SBP said that the country's economy is moving in the right direction. To a question about SBP’s working in the future, Baqir said that the banking system as the autonomous body would have better results.