7  V.  Medium term outlook  In reviewing the monetary policy stance at this juncture, SBP recognizes the potential downside risks to the medium term macroeconomic outlook: •  First, international crude prices remain a potent threat to overall price stability.
While the pass-through of international crude prices has been managed well so far, further escalations could immediately endanger the fragile balance that currently prevails between the budget management, oil companies and consumers.