Governor of State Bank of Pakistan (SBP) Tariq Bajwa on Saturday said that an inquiry into the sudden rupee plunge is in progress; and it will be finalized soon. Addressing the monetary policy briefing, he said that widening current account deficit and lower exports are major challenges for the economy, however, exports are likely to increase in the near future as international prospects of export are quite positive.
He said that during May this year exports witnessed a decline due to a transporters'' strike, however in June exports posted some increase and its is being expected that this trend will continue in future. Bajwa said there is some pressure on exchange rate and SBP is closely monitoring it on daily basis. Replying to a question, he said that the government is also making efforts towards reviving sick industries particularly those relate to textile sector and the issue was also discussed in a recent meeting with banks.
Talking about inflation, the governor SBP said that inflation is still in control and SBP is projecting average CPI inflation in the range of 4.5-5.5 percent for this fiscal year. He dismissed the impression that Non-Performing Loans (NPLs) of the textile sector are increasing.