The analysis is based on a Bayesian VAR 1 which includes HICP excluding energy and food, real activity indicators (real GDP, the unemployment rate and real investment), external variables (NEER, non-energy commodity prices, oil price in US dollars and foreign demand) and financial variables (short-term interest rates lending rates and real loans to non-financial corporations).
I attach a lot of importance to this particular area of work and I will take personal interest in developing a cadre of professional bankers in Pakistan who are of international standards and can move into multinational banks without much difficulty.