Economic stability top priority, says SBP governor

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LAHORE, Sep 08 (APP):State Bank of Pakistan (SBP) Governor Dr Reza Baqir has said that stabilising economy was a top priority while effective and comprehensive measures were being put in place for improving economy gradually.

He was talking to business community under the leadership of Abdul Rauf Mukhtar, Regional Chairman of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), here at FPCCI Regional Office, according to Federation’s spokesman here on Sunday.

The SBP governor said that reasons behind increasing trade deficit in recent years was the absence of a market-based exchange rate.

Dr Reza Baqir said, “In previous years, whenever the trade deficit increased, the exchange rate did not adjust as it was kept fixed.

And it led to increase in the deficit since there was an intervention in the system.” National economy suffered a huge loss when the money in exchequer ended, he said and added, “However, we have brought the exchange rate in the market system by devising a policy that ensures monitoring of supply and demand movements.”