KARACHI: The demand and supply will decide the rate of US dollar, Reza Baqir, Governor, State Bank of Pakistan (SBP) said on Monday in his maiden press conference.
“Let the market decide the dollar rate,” he said while replying to questions regarding exchange rate.
He said that there were impacts of high inflation while increasing exchange rate. On the other hand if exchange rates are maintained then it will result in high debts, he added.
At present the exchange rate is being decided by the market and it help in improving the indicators, the SBP governor said.
The governor said that by controlling the exchange rate the imports had been reduced. He said that current account deficit had been reduced significantly. The deficit was at $19.8 billion. The deficit has been narrowed to $13 billion so far in the current fiscal year.
He said that exchange rate was improved before Eid ul Fitr due to better inflows. However, payment pressure from corporate sector has against pressurized the local currency, he added.
The SBP governor said that the economic team is bringing improving in the country.
He said that in the past such budgets were presented which had failed to yield results.
However, in the current budget relief measures have been announced under social protection program.
Talking about the IMF program and its conditionalities, he said that people should wait till July 03, 2019 and after that all the documents related to fund programs would be made public.