CPEC Upsets Pakistan’s Balance of Payments: SBP
The Governor of the State Bank of Pakistan , Ashraf Mahmood Wathra, has planned to maintain the policy interest rate at 5.75%.
via : www.dawn.com
The SBP has also paid attention towards a certain risk to the balance of payments due to CPEC imports. SBP highlights that due to the increasing number of imports under CPEC is the big cause of pushing current account deficit to $3.6 billion the first half of FY 17.
the Governor of the State Bank Pakistan also stated that low interest rate causes borrowing where private business take borrow from the banking sector. he added by saying that in the first half of 2017 the private sector borrowed Rs. 375 billion compared to Rs. 282.6 billion of last year.
via : www.todayspak.com
The loans for fixed investments also have upgraded from Rs. 83.3 billion of last year to Rs. 134.1 billion in the first of 2017.