By Recorder Report
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KARACHI: The devastating floods and heavy rains are badly damaging the economy of Pakistan. There has been a loss of billions of rupees in terms of facilities and finances, said Ateeq ur Rehman, economic and financial analyst.
The situation is speedily increasing Inflation and pulling down the number of GDP.
It is now increasingly clear that the possibility of a decline in the policy rate would have to be deferred till such a time as the government is able to grapple with the narrower available fiscal space due to floods.
Further, sensibly speaking, it is symbolic to ask for a reduction of policy rate rather under the circumstances, Monetary Policy Committee is advised to refrain from any cut in policy rate and maintain the status quo in the upcoming Monetary Policy on 15th September 25.
It is threatening lives, destroying livestock, dairy farming, and undermining food security of millions. Therefore, the impact of food inflation is ballooning.
It is stressed that the urgency of collective efforts in the face of severe floods emergencies to be taken, where our institutional capacities are ridiculously inconsistent.
Copyright Business Recorder, 2025
