The State Bank of Pakistan (SBP) is likely to raise the interest rate by 2 per cent at the ensuing meeting of the Monetary Policy Committee (MPC) in an attempt to unlock the delayed International Monetary Fund (IMF) loan programme, reported the News International.
The IMF and Pakistan were supposed to sign a staff-level deal on 9 February.
The Shehbaz Sharif-led government is adopting desperate measures to obtain much-needed funds, but the IMF is not pleased with the incumbent government’s previous actions.
According to sources, cited by The News International, the IMF requested that Pakistan raise its interest rate by 4 per cent. According to the interest rate, the fund believed that inflation in Pakistan was lower.
The SBP recently increased interest rates by 2 per cent, but the IMF is now forcing Islamabad to raise rates by 2 per cent again.