Majid Khan

Monetary policy refers to the process by which a country’s central bank—in Pakistan’s case, the State Bank of Pakistan (SBP)—controls the money supply, interest rates, and credit availability in the economy. The primary goal is to achieve price stability (low inflation), support economic growth, and ensure financial system stability. Objectives of Monetary Policy in Pakistan […]

When we talk about a country’s economy, the term central bank often pops up. But what exactly is a central bank, and why is it so important—especially in a country like Pakistan? Let’s break it down. What Is a Central Bank? A central bank is the top financial authority in a country. It doesn’t serve

Interest rates are a critical tool in economic management, influencing inflation, investment, savings, exchange rates, and overall economic growth. Central banks, like the State Bank of Pakistan (SBP), use interest rates (primarily the policy rate) to control monetary conditions. 1. What Is an Interest Rate? An interest rate is the cost of borrowing or the

By MAJID KHAN Msc Finance Pakistan’s economy is a developing mixed economy, with agriculture, industry, and services all playing significant roles. However, it faces numerous structural challenges that hinder sustainable growth. Here’s a detailed overview of the economy of Pakistan and the key challenges it faces: 1. Overview of Pakistan’s Economy GDP and Economic Structure

Boo-and-Burst cycle in an economy