Home / Knowledge / News / Textiles / Pak central bank cuts interest rates to boost growth
Pak central bank cuts interest rates to boost growth
23
May '16
The State Bank of Pakistan (SBP) has cut its key policy rate by 25 basis points to 5.75 per cent which is lowest in 40 years, to boost the economy after a dismal performance by the agriculture sector.

Pakistan's GDP grew only 4.7 per cent against the target of 5.5 per cent after the country missed the economic growth target for the current financial year largely due to a dismal performance by the agriculture sector.

In its monetary policy statement on Saturday, SBP slashed its policy interest rate from six per cent to 5.75 per cent, lowest in 40 years, as per its assessment that inflation would remain below the target set for the 2016 financial year.

The policy rate was previously cut by 50 basis points to six per cent in September last year.

Financial analysts, trade and industry experts said the cut in policy rate cannot alone bring an improvement in the country's economic growth and insisted the government also has to take adequate measures to encourage and boost the manufacturing sector.

The SBP said the country would not achieve its GDP growth target of 5.5 per cent for the current financial year which ends on June 30, but it would exceed its last year's figure of 4.2 per cent.

The losses from cotton and rice crops were major reasons for the slow economic growth but an increase in industrial activities and services sector would salvage some of the lost momentum of GDP growth, the central bank said. But it cautioned that uncertainty might arise if there was an adverse change in oil prices or workers' remittances.

Inflation was likely to climb in the next financial year, as rising global oil prices, new taxes and increase in electricity and gas tariffs would put upward pressure on CPI inflation.

The SBP said that recovery in large-scale manufacturing, which grew by 4.7 per cent during July-March FY16 compared to 2.8 per cent in Jul-Mar FY15, was expected to continue further on account of improving energy and security conditions. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search