The State Bank of Pakistan (SBP) announced a 250bps policy rate cut in today’s Monetary Policy Committee meeting, aiming to support economic activity while managing inflation and debt obligations. Here are the key highlights: External Debt Management For FY25, Pakistan faces external debt obligations totaling USD 26.1 billion, with USD 22 billion as principal and USD 4 billion in interest. …
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The Pakistani government announced on Tuesday its need for Rs32 trillion in loans for the fiscal year 2024-25, relying heavily on rollovers from foreign banks and bilateral lenders. The success of this borrowing plan is contingent on the timely approval of the International Monetary Fund (IMF) programme and continued financial support from China. Key Aspects of the Borrowing Plan The …
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Fiscal Deficit Forecast The finance ministry has projected a substantial increase in Pakistan’s fiscal deficit, estimating it could reach Rs9.655 trillion in the upcoming fiscal year. This projection reflects ongoing concerns about managing public finances amid rising debt obligations. Economic Growth and Inflation Despite the deficit projection, the finance ministry anticipates economic growth to rise by 4.8% during the fiscal …
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