PakistanEconomicCrisis: Pakistan accepts another condition of IMF, agrees to increase interest rate by 200 basis points

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Islamabad: Pakistan’s government has agreed to raise the policy interest rate by two per cent or 200 basis points to meet another condition set by the IMF, reports said, adding that with the new decision, Pakistan has secured significant funding. Pakistan has accepted another precondition of the IMF to release USD 1.1 billion, which is a part of the USD 6.5 billion bailout package, as Pakistan announces interest rate hike Is based on the rates fixed in the auction by the government for raising household loans.

Pakistan accepted the condition for US $ 1.1 billion

With the new decision, Pakistan has accepted another IMF precondition for releasing US$1.1 billion in critical funding, a part of the $6.5 billion bailout package. Pakistan has announced an increase in the interest rate on the basis of the rates set by the government in the auction to increase the domestic debt.

Interest rate will be 19 percent

The decision by the Pakistani authorities will bring the interest rate to 19 percent, which is just below the previous record of 19.5 percent set in October 1996. Sources in the Finance Ministry of Pakistan said that there has been a kind of technical level discussion between Islamabad and the IMF review mission. According to the report, sources revealed that it was expected that Pakistan would increase the interest rate by two per cent. According to sources, talks between the Pakistan government and IMF officials on some issues in the power sector are in the final stages.

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