KARACHI: The State Bank of Pakistan (SBP) maintains the highest degree of transparency in its disclosures and complete independence in its views on the economic situation.
The SBP denied a comment published in The News on November 20 that the revelations were trusted by the public and that their information was considered authentic and credible.
“The State Bank of Pakistan strongly condemns the commentator’s remarks,” the SBP said in a statement.
The SBP has rejected allegations against the SBP governor that he is twisting the facts to paint a rosy picture of the economy.
“These allegations are false, baseless and an attempt to make the governor’s office controversial,” he said. “The governor’s malice undermines the position of the head of an independent and important institution of the country in the minds of innocent readers of the newspaper, which could have potentially far-reaching negative consequences of trust in the central bank.”
The SBP also rejected criticism of the economy’s progress during the pre-Cove 19 epidemic.
“The author is of the opinion that the recovery of the economy in the pre-Kwid 19 period is not correct and the budget deficit was out of control,” he said.
“The fact is that the fiscal deficit during July-March of the fiscal year was only 3.8 per cent of GDP, which is showing a dramatic improvement compared to the fiscal year’s fiscal deficit of 5 per cent during July-March.”
The SBP added that the basic balance during the same period was more than 0.4 per cent of GDP, for the first time since FY16. Similarly, the claim of reduction of 625 key points in the policy rate during COVID-19 has been widely praised by all stakeholders, especially businesses, and with other countries. Unacceptable comparisons reflect ignorance.
The SBP said that it has provided a detailed analysis of the progress made during the financial year 2020 in its latest annual report on the state of Pakistan’s economy, “which makes it clear that the pre-COVID-19 What happened in the periods? “
According to the report, after a difficult but necessary stabilization effort during the first nine months of the financial year, Pakistan’s economy remained stable for a stable recovery in the wake of the Cove 19 epidemic.
“By February 2020, the unprecedented balance of payments crisis due to the volatile economic policies of previous years has been highlighted by the drastic reduction in the twin fiscal and current account deficits. Over time, core inflation remained relatively stable, nevertheless headline inflation continued to rise due to a host of forces and climatic factors. It was restoring trust.