Business
Uncertain political situation impacting economy negatively: SBP
The SBP stated that improving the political and policy uncertainty and further fiscal consolidation can help reduce inflation sharply in the short term
Karachi: The State Bank of Pakistan (SBP) stated that the uncertain political situation is having negative impact on the country's economy.
The State Bank released the first half-year report of the financial year 2024 titled ‘State of Pakistan's Economy’ on Tuesday, which contains an analysis of the statistics for the fiscal year 2024 from July to December.
According to the report, real economic activity recovered moderately from last year's contraction, while the Standby Agreement (SBA) with the International Monetary Fund (IMF) helped ease pressure on the external account but the economy continues to face structural constraints.
According to the central bank, the major problems faced include limited savings, low investment in physical and human capital, low productivity, stagnant exports, low number of taxpayers and inefficiency of public sector enterprises.
The State Bank said that the uncertain political situation is having a negative impact on the country's economy, improving the political and policy uncertainty and further fiscal consolidation can help reduce inflation sharply in the short term.