The central bank has expressed concern over the political turmoil in Pakistan saying that the uncertainty has caused recent depreciation of the rupee.
Monetary Policy of State Bank Director Hamza Malik has said that political turmoil had pushed the currency’s value down but termed it a transitory phase.
Malik told reporters at SBP that protests would affect the supply chain which would devalue the rupee and increase the inflation. The central bank official, however, called the devaluation of currency a transitory phase which will subside with coming inflows of dollar.
Terming the ongoing political unrest as a “temporary phenomenon”, the SBP official was upbeat that things would normalise when the prevailing “uncertainty” went away.
Responding to a question, he denied any stalemate in talks with the IMF. He said three demands of the IMF about the jurisdiction of the State Bank had been implemented.