Dr Reza Baqir, Governor State Bank of Pakistan (SBP) has said that Government of Pakistan and International Monetary Fund, both are on the same page with respect to reforms in the Power Sector and reduction in the CIrcular Debt.
Governor SBP was addressing participants at second day of 23rd Annual Sustainable Development Conference of the Sustainable Development Policy Institute (SDPI). The topic of the day was ‘Pakistan’s Economic Response to Covid-19 and Way Forward for an Inclusive Economic Recovery’.
Dr Reza Baqir mentioned that Paksitan’s exports have recovered to level of around $2 billion which is around Pre-Covid Numbers, with recovery seen in cement, chemical,textiles, pharmaceutical and rice sectors.
He also said that Pakistan should focus on how to improve competitiveness and reduce dependency on imports in order to ensure sustainable economic growth.
“To boost economic activity and job opportunities in the country, the central bank is working with the banks to ensure that lending to small and medium enterprises (SMEs) and housing sector are increased.”
Governor SBP further said that the government has started implementing a consistent and holistic policy to promote the housing and construction sector.
In a comparative analysis, Dr Reza Baqir said that while India’s economy had suffered a sharp decline due to Covid-19 outbreak, Pakistan’s economy has remained resilient and marking a sharp recovery. This is due to the fact that the government and Central Bank had taken timely measures to stop bankruptcies from happening since that could have led to long-term implications.
“Now that demand is coming back from the world market, our exporters are ready due to the liquidity and smart lockdowns. What we need to focus now is to increase our export-to-GDP ratio,” he concluded.
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