ISLAMABAD – State Bank of Pakistan today released its First QuarterlyReport on the State of Pakistan’s Economy for Fiscal Year 2019.
According to the report, the overall macroeconomic environment remainedchallenging during the first quarter of FY19 as suggested by thepreliminary data.
The 6.2 percent target for real GDP growth seems unachievable with thepolicy focus now tilted towards macroeconomic stabilization.
The primary concern was the steep rise in global crude prices, which notonly reinforced the already strong underlying inflationary pressures in theeconomy, but also eclipsed emerging improvements in the external sector.
The production of all major Kharif crops remained lower as compared to thelast season, due to lower water availability, which led to a decline in thetotal area under production.
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Responding to these challenges, the new political regime immediatelyannounced cuts in development spending, partially reversed tax reliefmeasures, and also explored avenues to bridge the external financing gap.
Meanwhile, Governor State Bank, Tariq Bajwa will address a press conferenceto unveil Monetary Policy of the country in Islamabad on Thursday.
The press conference will be followed by the meeting of Monetary PolicyCommittee.
