Pakistan's economy is on its way to stability: central banker

Source: Xinhua| 2019-06-18 08:21:20|Editor: Li Xia
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ISLAMABAD, June 18 (Xinhua) -- Governor of Pakistan State Bank Reza Baqir has said that the country's economy is on the path of stability and efforts are being made to further improve the economic condition.

Addressing a press conference here on Monday, Baqir said that fiscal deficit of the country is shrinking and the government is taking measures to restore the confidence of people in the economy.

Pakistan's economic future is bright as the government's economic plan envisages stabilizing the economic situation for higher and inclusive growth, which will pass benefits to middle and lower classes, he said.

Talking about the International Monitory Fund (IMF) 6 billion U.S. dollars loan program in a period of three years to Pakistan, the central banker said that his country will have a meeting with an IMF team on June 30 for the loan, and the program will be beneficial for the economic stability of the country.

"The agreement of IMF to release loan tranche for Pakistan shows its trust on the potential of economic reforms of the country."

He said the central bank is trying to manage price stability to reduce inflation and create financial stability so that the financial system does not collapse, adding that the primary consideration of financial institutions of Pakistan is to fight inflation, and the state bank, being one of the stake holder will continue to use all the tools at its disposal to fight inflation.

Baqir added that the current government will not borrow money from the state bank, a practice which had been done in the country previously, which will make an improvement to the exchange rate.

"When the state bank finances the government, it has an inflationary effect and puts pressure on the exchange rate," Baqir said, adding that the government's decision will help the bank maintain its interest rate, and fight inflation.