Photo: fileState Bank of Pakistan (SBP) Governor Jameel Ahmad has reportedly expressed his lack of knowledge regarding the debt restructuring exercise mentioned by Finance Minister Ishaq Dar, indicating a communication gap between the government and the central bank. Pakistan’s GDP growth rate for the outgoing fiscal year 2023 was a mere 0.3%, significantly lower than the 6.1% achieved in FY22. The private sector, considered the engine of economic growth, needs access to affordable credit to stimulate economic expansion. While the SBP has raised the policy rate cumulatively by 7.25 percentage points during FY23, further significant rate cuts are necessary to fuel economic growth. The significant contraction in the industrial sector and the slower growth in the services sector have been major drags on economic growth.
