Prime Minister Shehbaz Sharif said Monday the government will ensure the best utilisation of available resources for economic revival, the welfare of the masses, and the country’s development, according to Radio Pakistan.
He made these remarks while presiding over a meeting of the National Economic Council in Islamabad.
Start of monetary easing: experts weigh in on SBP’s decision to cut key policy rate
The premier said the federation will ensure consultations with the provinces and other stakeholders in all key decisions with a collective approach and consensus to be taken for economic revival in the country.
He said the National Economic Council is the biggest forum to make decisions on the national economy and economic revival.
PM Shehbaz directed the National Economic Council to constitute a committee to equip the Council with the requirements of the modern era.
The committee in consultation with all the provinces and stakeholders will prepare its recommendations to make the Council more functional.
In a related development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) on Monday announced a policy rate reduction of 150 basis points, taking it to 20.5%.
Pakistan’s budget on Wednesday will aim to set stage for IMF bailout, say analysts
The central bank’s decision to initiate monetary easing comes after CPI inflation simmered down to 11.8% in May, significantly lower from a historic high of 38% last year during the same month. Moreover, several central banks around the world including the Bank of Canada, and the Bank of England have already initiated rate cuts.
Pakistan’s coalition government is expected to lay out ambitious fiscal targets in the 2024/2025 (July-June) budget on Wednesday that will help strengthen its case for a new bailout deal with the International Monetary Fund (IMF), officials and analysts said.
Pakistan is in talks with the IMF for a loan estimated to be anything between $6 billion to $8 billion to avert a default for an economy that is growing at the slowest pace in the region.