NewsGuru:
Monetary Policy: Risks and Challenges
Money supply up by 19.3 pct in FY07 to PKR 658.3 bln
Stock of short-term treasury bills PKR 452 bln
Export refinance schemes distort incentive structure
Reserve money exceptional high by 20.9 pct to PKR 209.1 bln
Demand pressures emanate from fiscal and external imbalance
SBP introduces strategic changes in monetary policy
SBP targets broad money supply of 13.7 pct for FY08
SBP invokes section 9A of 1956 Act
SBP recommends Govt to retire PKR 62.3 bln debts
Centrals bank calls for quarterly budget borrowing ceilings
SBP advises Govt to rely on PIBs and Islamic bonds
Trends in food inflation remain worrisome
Capital inflows, budget borrowing, export refinance poses challenges
Expansionary budget FY08 threaten to raise demand pressures
SBP raises policy rate to 10 percent
Zero rating of CRR for deposits of one-year and above maturity
SBP asks Govt to issue PKR 100 bln PIBs, PKR 30-40 bln Islamic bonds
New Long Term Financing Facility (LTFF) to promote export led industrial growth
No charge on Basic Banking Accounts
Procedural Streamlining of Lending Rates
Current account deficit to $7 bln in FY07
Real Effective Exchange Rate appreciates slightly
Fixed investment up, consumer finance down in FY07
Government over reliant on commercial banks
Government retires obligations from the privatization and foreign receipts
T-bills cut-off yields move up
6 Month KIBOR inches up by 30bp
Banking spreads for June 2007 stand at 7.35 pct
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N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD
0321-5117511
16th Floor,
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