September 28, 2006	Thursday	Ramazan 4, 1427

MUMBAI, Sept 27: Pakistan's central bank governor said on Wednesday that Pakistan was in the midst of a monetary tightening and she was confident of reining in inflation to 6.5 per cent by 2007.

“It is hard to say when we will ease monetary tightening. We would like to see a sustained decline in (core) price index,” Shamshad Akhtar, Governor of the State Bank of Pakistan, told reporters in Mumbai.

Data for August showed the consumer price index rose 8.93 per cent from a year earlier and the wholesale price index rose 8.17 per cent from a year earlier. Ms Akhtar said she was confident of bringing down inflation to 6.5 per cent by 2007.

“We would like to see private credit growth slow further. Private credit growth has come down from 30 per cent to 23 per cent in the fiscal year 2006,” she said.

Ms Akhtar was in Mumbai to attend a banking seminar. She was scheduled to chair a session at 10:30am, but left just before it began.

“Yes, I have to. I have a meeting tomorrow in Islamabad,” she told Reuters when asked if she was cutting short her visit.