SBP refutes news item

ISLAMABAD: The State Bank of Pakistan refuted the story attributing statements of the SBP Governor appeared in The News and Daily Jang.

SBP press release says, “Apropos your story on October 11, 2019 entitled, “People must show patience: More shocks of inflation likely,” while quoting SBP Governor, it says, “SBP Governor Reza Baqir has said the people should show patience, as they would have to face more shocks of inflation.” Similar story has been published in the Daily Jang on October 11, 2019. Both the stories have been published after Governor State Bank’s talk in “Breakfast with Governor, State Bank” which was held on October 10, 2019 in Karachi.

In the entire talk including question-answer session, State Bank Governor has not made such statements. Instead he repeatedly stated that reducing inflation is State Bank’s key priority and that whatever pressure existed on inflation will start declining and inflation rate will come down, particularly in the second half of the fiscal year. He also emphasised in his talk that we need to have some patience as monetary policy tightening has been done with the objective to reduce inflation and that State Bank will continue to fight inflation.

Further he stated in the program that inflation targeting is a good regime because central bank keeps itself accountable to achieve the target.

He added that State Bank is gradually moving towards that; however transition to inflation targeting will take some time. But it is our goal and this is the first year that the government has given us inflation target. We are confident to achieve the target.

While requesting for showing patience and optimism, Governor State Bank stated “Insha Allah we are confident that the situation will become better,” adding “when difficult steps are taken, some small shocks might take place and that State Bank is prepared to deal with such shocks.” He requested the audience not to worry in case any unanticipated event took place like international oil price rises or any external development because State Bank is more confident now to meet such challenges. He also stated that the worst is behind us and requested the audience to keep positive things in sight and assured them that next year will be better and State Bank will continue to do better.

In light of the above facts, the statement reported in your stories is factually incorrect and misleading. You will agree that robust fact checking before filing a story could help in avoiding any misleading information printed and thus any potential damage to an institution and the country. You are requested to publish a prominently displayed correction/corrigendum in next print edition in both the newspapers.