KARACHI: The State Bank of Pakistan (SBP) has injected about Rs1.73 trillion, or 4.1 per cent of GDP, in the economy to support individuals and businesses during Covid-19 through various proactive measures, including dramatic reduction in interest rates from 13.25pc to 7pc, loan deferment, employment support and Rozgar Scheme, said SBP Governor Dr Reza Baqir on Tuesday.

Baqir said this in an interactive session with leading foreign investors and members of the Overseas Investors Chamber of Commerce and Industry (OICCI),

“The fiscal deficit narrowed to 3.8pc of GDP in July-March FY20 with the current account balance in surplus for the first time since 2016,” he said.

“Since June 2019, Pakistan has transitioned to a market-based exchange rate regime, resulting for the first time ever in an orderly two-way movement of exchange rates in the country, which has led to a significant shrinking of the current account deficit, and better fundamentals facilitated capital inflows,” he said.

OICCI President Haroon Rashid highlighted the significant economic contribution of foreign investors at the OICCI, who are among the largest economic stakeholders and have invested over $16 billion in the past eight years and continue to have a positive view of the opportunities for investment despite the ongoing challenging economic environment in the country.

OICCI shared with Baqir key concerns including delays in approval of foreign exchange payments and cumbersome documentation requirements and sought the governor’s support in the light of the SBP policy to facilitate foreign direct investment through improving ease of doing business.

Published in Dawn, November 11th, 2020