SBP can further slash interest rate in November, says Aurangzeb

Finance Minister Muhammad Aurangzeb Wednesday hinted State Bank of Pakistan (SBP) might further slash interest rate in November’s Monetary Policy.

“SBP has cut its benchmark interest rate for three consecutive meetings by 450 basis points to 17.5 per cent from a record 22 per cent. The next meeting on Nov 4 may see the central bank reduce the policy rate, Muhammad Aurangzeb in an interview with Bloomberg in Washington on the sidelines of the IMF meeting.

Pakistan’s finance minister said the incumbent government is trying hard to increase shares of taxes in the economy up to 135%.

Commenting on the Chinese debt, the minister said Pakistan is getting a promising response from China over its request to lengthen maturities for Belt and Road Initiative loans.

Electricity prices have tripled for some people in Pakistan in the past few years and surpassed house rent for some, he added.

Pakistan is seeing a period of stability after securing a new $7 billion loan program from the IMF. It has also seen partners including China roll over debt of $16 billion from a total of about $26 billion due in the current fiscal year that started in July.

Pakistan finance minister said to boost tax revenue, Pakistan will target sectors including retail and agriculture that have opposed previous attempts at taxation.

The nation’s provinces will move forward on legislation on the agriculture side by January and aim to start collection by July, the finance chief said in the interview with Bloomberg.