The economy is recovering but it lacks the necessary infrastructure and sufficient macroeconomic stability to build on the momentum. — File Photo

KARACHI The State Bank of Pakistan(SBP) has decided to keep its Policy Discount Rate unchanged at 12.5 percent.

This decision was taken at a meeting of the Central Board of Directors of the SBP held under the Chairmanship of SBP Governor, Syed Salim Raza.

The economy is recovering but it lacks the necessary infrastructure and sufficient macroeconomic stability to build on the momentum.

However, the worsening power crisis, which has severely hampered economic activity in the economy, and fiscal weaknesses, continue to impede sustainable recovery and comprehensive macroeconomic stability.

At the same time, inflation has started to increase gradually. In this scenario, monetary policy, being a stabilization tool, has to remain focused on its ultimate target of monetary and financial stability. — DawnNews