SBP To Announce Sixth Straight Rate Cut To Revive Economy

SBP - The News Today - TNT
Islamabad:  Rising tobacco and nicotine use among Pakistan’s youth, especially around educational institutions, emerged as the central concern at a national review session on tobacco control held by the Aurat Foundation in Islamabad. Participants from Parliament, government departments, health organizations, and civil society warned that easy availability of cigarettes, vapes, nicotine pouches, and flavored tobacco near schools is creating a growing public health threat. The discussion also pointed to a noticeable increase in tobacco use among women, indicating a shifting trend. The session called for stronger legislation, faster policy action, and strict enforcement to counter the rapid spread of emerging nicotine products. Speakers emphasized that existing laws remain poorly implemented due to procedural delays, weak monitoring, and limited coordination between federal and provincial bodies. The need for clear parental awareness, community engagement, and better recognition of new nicotine products was highlighted as an essential part of early prevention. Officials noted that families and schools often remain unaware of modern products marketed to young people. Technical briefings identified major enforcement gaps and policy loopholes that allow the tobacco industry to expand its reach. Participants noted that companies are increasingly using social media trends, entertainment content, and youth-focused marketing to promote vaping in urban areas. Government representatives reaffirmed ongoing federal efforts to implement the Prohibition of Smoking and Protection of Non-Smokers Health Ordinance 2002 and to tighten regulations where required. Provincial representatives also announced plans to introduce new resolutions to strengthen tobacco control. Education sector officials raised alarms over the rise of nicotine products around private institutions and called for tougher regulatory checks. Regulatory authorities stressed the need for a broader social movement to counter tobacco use nationwide. Closing the event, the Aurat Foundation reiterated its commitment to evidence-based advocacy, cross-sector collaboration, and long-term public awareness initiatives aimed at building a healthier, tobacco-free society.

KARACHI: The State Bank of Pakistan is looking to give another rate cut for the sixth consecutive time by decreasing key interest rate by at least 1 percentage point on Monday, reports said.

In sixth straight cut as the SBP attempts to revive economic and business sentiment as inflation slows sharply.

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The central bank has slashed rates by 900 bps from an all-time high of 22% in June 2024, in one of the most aggressive moves among emerging markets’ central banks and topping the 625 bps in rate cuts it did in 2020 during the COVID-19 pandemic.

The SBP is expecting to lower rates by 100 basis points (bps), an analyst . Only one analyst expects the bank to hold rates at 13%.

Of the 14 analysts who expect a rate cut, 11 expect a 100 bps reduction, one expects the central bank to lower rates by 150 bps and two expect it to chop rates by 200 bps.

The analyst has said his forecast for a 150 bps cut was “driven by the low December inflation figure and a stable exchange rate supported by a healthier current account.”

Pakistan at present is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.

The country’s current consumer inflation rate slowed to an over 6-1/2-year low of 4.1% in December, largely due to a high year-ago base. That was below the government’s forecast and significantly lower than a multi-decade high of around 40% in May 2023.
The central bank, in its policy statement in December, noted that it expected inflation to average “substantially below” its earlier forecast range of 11.5% to 13.5% this year. However, inflation may pick up in May as the base year effect wears off, some analysts have predicted.

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