This is apropos a Business Recorder news item “Dar, SBP chief discuss fiscal, monetary steps” carried by the newspaper on Tuesday. According to it, Finance Minister Ishaq Dar and Governor SBP discussed the fiscal and monetary measures being undertaken for economic stability, revival and growth of the economy.
It is a fact that the policy steps taken by the government or the central bank have failed to break the back of rising inflation challenge.
The rising interest rates, on the other hand, are strangling economic activity. Moreover, there is no price stability or the conditions in which PKR retains its purchasing power by maintaining low and stable inflation.
The governor State Bank of Pakistan is requested to employ all the tools available at his disposal in order to deal with the challenge of rising inflation regardless of government’s preferences that are often driven by political expediency. In other words, the central bank must show its true independence.
Rashid Kidwai (Karachi)
Copyright Business Recorder, 2022
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