SBP releases first quarterly report on state of economy

KARACHI: The State Bank of Pakistan has released its first quarterly report on the ‘State of Pakistan’s Economy for Financial Year 2018-19’.

According to the report, the overall macroeconomic environment remained challenging during the first quarter of FY19 as suggested by the preliminary data.

The primary concern was the steep rise in global crude prices, which not only reinforced the already strong underlying inflationary pressures in the economy, but also eclipsed emerging improvements in the external sector.

Fiscal pressures also remained intact as expenditure rigidities allowed only a limited room for the government to maneuver. Responding to these challenges, the new political regime immediately announced cuts in development spending, partially reversed tax relief measures, and also explored avenues to bridge the external financing gap.