News Desk
ISLAMABAD: The State Bank of Pakistan (SBP) on Thursday decided to raise the policy rate by 300 basis points (bps) to 20 percent – a three percent hike from the previous rate of 17 percent.
The central bank’s Monetary Policy Comittee (MPC) made the decision in its meeting today, in a bid to address the surging inflationary pressure.
1/3 The Monetary Policy Committee decided to raise the policy rate by 300 basis points to 20 percent in its meeting today. https://t.co/8ceKtaFu3j pic.twitter.com/OZA85p0Ewx
— SBP (@StateBank_Pak) March 2, 2023
A bid to resume IMF funding
Pakistan is adopting critical measures to secure funding from the International Monetary Fund (IMF), including an increase in taxes and removal of blanket subsidies and artificial curbs on the exchange rate.
While the government expects finalising a deal with the IMF soon, media reports say the global funder expects the policy rate to be increased as well.
