Situation of economy is better than what it was six months ago: SBP Governor Reza Baqir
Policy to keep an exchange rate fix is the reason for the budget deficit. Governor SBP
Private sector must come forward and do its part for the prosperity of this country: SBP Chief
The situation is better than it was six months ago: SBP Governor
On Saturday while addressing to an audience of business leaders in Lahore the Governor of State Bank Reza Baqir said the absence of a market-based exchange rate is the reason why trade deficit increased in the recent years. Although we are trying to improve the economy, he further added.
“In previous years, whenever the trade deficit increased, the exchange rate did not adjust as it was kept fixed. And it led to increase in the deficit since there was an intervention in the system,” said Mr Baqir.
“We have brought the exchange rate in the market system by devising a policy that ensures monitoring of supply and demand movements,”
The chief of the SBP asserted that recently Pakistan’s exports had increased to 10 to 20 pc due to sustained policy.
Government of Pakistan is making their efforts to improve employment. In addition to that, the government is also trying to get the desired amount of profit increase in private business, said SBP Chief.
“We believe in competition, as without this we cannot progress. So the private sector must come forward and do its part for the prosperity of this country,” he said.
He further added that reforms have been made and new practices are introduced to improve the economy. The situation is better than it was six months ago.
Economic situation of Pakistan
A stable economy guarantees better chances of survival and improvement of a state. However, Pakistan’s economy is on the ventilator.
For as long as we can remember authorities of Pakistan are unable to form a constructive policy of collecting tax. Presently, only one percent Pakistani’s pay their taxes. Pakistan is one of the countries with the lowest tax to GDP ratios in the world.
Economic challenges of Pakistan
Law and order situation
Low export and High import
Economic problems of Pakistan
Poor implantation of Budget
No Tax Payers