Governor State Bank, seeking details of previous containers, pre-approval of certain imported goods ended.
Karachi (Business Reporter, APP) State Bank has increased the interest rate from 16% to 17%. Governor Jameel Ahmad said in a press conference that the Monetary Policy Committee has decided to increase the interest rate by 100 points because of the delay in new inflows, which is increasing the pressure on foreign exchange reserves, due to uncertainty due to global conditions. There is an impact on remittances and exports. Achieving the 2% growth rate target of economic development will be difficult, business conditions and import problems will affect, large-scale manufacturing is also under pressure.
July, December current account deficit was 3.7 billion dollars, the current account deficit is expected to be less than 10 billion dollars, i.e. up to 9 billion dollars. had already defaulted on loans, which affected the exchange rate and a one percent increase in interest rates was inevitable to control inflation. There is a world of speculation in the value of the rupee, the market rate is high due to external financing needs and the need to repay debts. The inflows will stabilize the value of the rupee. Apart from the exchange companies, if there is a foreign exchange transaction, it is illegal, Assad is taking action against the cheaters.
The financing requirement was $33 billion, with a current account deficit of $10 billion and external borrowings of $23 billion. Out of which 15 billion dollars were settled, 9 billion dollars were paid and 6 billion dollars were fined. Loans of 8 billion dollars are to be given in the next five months, and fines will be given for another 3 billion dollars.
financing limit by State Bank
The $2.2 billion financing limit will be reinstated, with net borrowings less than $3 billion to be repaid in five months. 2 billion dollars will be given as interest and another billion dollars will be given as interest. Prior approval of State Bank was required for imports. In some cases, imports were made without the approval of banks, stranded containers became a major problem, details of shipments were sought, capital was obtained from abroad or clearance of imports was allowed on deferred payments, the Chamber of Commerce and Industry said.
Other imports will also be facilitated in the light of the details provided by the Commerce. 13 banks made money amid high exchange rate volatility, investigation complete Further, State Bank has withdrawn the condition of prior approval for certain imported goods (goods falling under HS Code Chapters 85, 84 and certain goods under HS Code Chapter 87) to facilitate businesses.
He has directed to prioritize import of essential commodities like food, medicine, energy etc. Chambers of Commerce have reported large numbers of imported shipping containers are stuck at ports because banks are delaying issuing shipping documents. State Bank has directed the banks to facilitate all such importers who can either extend their payment period by 180 days (or more) or who can settle pending import payments.
Can transfer funds from abroad. Banks are therefore directed to issue by March 13 the in-shipment minutes/documents of goods which have arrived at the port or departed before January 18. Further, banks have been directed to inform customers to inform the bank before initiating incoming transactions to avoid inconvenience.
KARACHI: The State Bank has increased the interest rate from 16 percent to 17 percent, which has reached the highest level in 27 years.
This was announced by Governor State Bank Jameel Ahmed while holding a press conference in Karachi. He said that the Monetary Policy Committee has decided to increase the interest rate by 100 basis points, after which the interest rate is being increased by one percent from 16 to 17 percent.
Governor State Bank said that there is a delay in new inflows which is increasing the pressure on the reserves, there is uncertainty for Pakistan due to global conditions and global conditions are affecting remittances and exports.
It should be noted that the interest rate has reached the highest level of 27 years, in 1997 the interest rate was 16.5%.
Governor State Bank said that it will be difficult to achieve the target of 2 percent growth rate of economic development, business conditions and import problems will affect the growth rate, large scale manufacturing is also under pressure, July December current account. The deficit stood at 3.7 billion dollars, the current account deficit is expected to be less than 10 billion dollars ie up to 9 billion dollars.
He said that a lot of loans have been repaid which affected the foreign exchange reserves, one percent increase in interest rate was inevitable to control inflation, market base exchange rate is being followed, market parameters. But the rate changes.
The governor said that there is a tendency of speculation in the value of the rupee, the rate is high in the market due to the need for external financing and debt repayment, the completion of the IMF review and inflows will stabilize the value of the rupee.
He said that apart from exchange companies, if there is a foreign exchange transaction, it is illegal, action is being taken against those doing illegal foreign exchange business.
He said that the need for financing was 33 billion dollars, the current account deficit of 10 billion dollars was the external debt of 23 billion dollars, so far, out of the 23 billion loans, 15 billion dollars have been settled out of which 9 billion dollars have been settled. Dollars have been paid off and 6 billion has been rolled over, while in five months, 8 billion dollars of debt has to be paid and another 3 billion dollars will be rolled over.
He said that the financing limit of 2.2 billion dollars will be restored twice. After paying two billion dollars, they will pay another billion dollars in interest.
Governor State Bank said that prior approval of State Bank was necessary for imports, in some cases imports were made without approval of banks, stuck containers have become a major problem, details of shipments have been sought from trade bodies, etc. Clearance of imports made by obtaining capital or on deferred payments from the country, will also facilitate the remaining imports in the light of the details provided by the Chamber of Commerce.
He said that the banks made money during high fluctuations in the exchange rate, I inspected 13 banks, the investigation against the banks was completed, regulatory and fiscal disciplinary measures will be taken, the banks that made money in the fluctuation of the dollar. Action will be taken against.