Last week, the Finance Minister was vocal about the government's endeavors to bring interest rates to single digits. However, such expectations contrast with the reality that no measures have been introduced to alter the public finances structure responsible for the breakdown conditions and near-disaster that kept policy rates elevated at 22% for nearly a year, seriously hampering economic activity. The Pak Rupee-USD parity stubbornly remains unchanged, and even the voices that once predicted it would fall below 250 have now fallen silent. The black hole of the energy sector remains voracious, with no sign of either power rates coming down or a resolution to the circular debt. The recent sharp decline in policy rates is primarily the result of stepping back from the brink and reducing the associated risk premium. However, government revenues remain stagnant, and harsh taxation measures reflect panic in public finance management. This is not an environment conducive to calming econ...
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