Kazi Abdul Muktadir, Deputy Governor of the State Bank of Pakistan, comments on the country’s interest rate outlook and growth.
Pakistan cut interest rates to 10.5 percent from 12 percent in August, seeking to bolster faltering growth with the first reduction since 2011. Muktadir spoke to reporters on the sidelines of a conference in Kuala Lumpur today.
On whether there’s room to further cut rates:
“We have to see when the time comes. We’ve had some opportunities to cut rates in the past but we want to see how those initiatives have functioned.”
On whether inflation or growth is a bigger concern:
“You have to find a balance between the two. You’ve got to pick up a middle path. We’ll have to wait until the next monetary policy (meeting) and we’ll sit down and decide on that.”
On whether Pakistan needs to tap the International Monetary Fund for further financial help:
“At the moment our remittances this year have been pretty heavy. We’ve had record remittances and looking at our receipts et cetera, there’s not been too much pressure on our balance of payments. But going forward we’ve got to see how it is and that’s when the government will be taking a decision on those areas.”
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