In the neighboring country of Pakistan, on the one hand pauperism is at its peak, and on the other hand inflation is showing its terrible form. To control inflation, Pakistan’s central bank State Bank of Pakistan has increased the repo rate tremendously, which is the highest level of 27 years.
Image Credit source: File Photo
The situation in Pakistan is getting worse and worse everyday. The story of the pauper’s condition in Pakistan is such that the government is working in the light of day to save electricity. From government events to working in offices, the rules have been tightened. At the same time, the general public is facing from expensive flour, pulses, rice to heavy power cuts. Now to control inflation, Pakistan has also increased the repo rate, which is the highest in 27 years.
State Bank of Pakistan, the central bank of Pakistan (State Bank of Pakistan) Has increased the repo rate by 300 basis points i.e. 3 percent. Now it has reached 20 percent, which is the highest in the whole of Asia.
Decision taken under pressure from IMF
Pakistan has decided to increase the repo rate under pressure from the International Monetary Fund (IMF). Pakistan, which is facing cash crisis, has also accepted the demand of IMF to increase the repo rate. Pakistan is constantly trying to raise loans from the IMF. It is expected to get $ 1.1 billion soon as the first installment of the $ 6.5 billion loan from the IMF.
broken pakistani rupee
The Central Bank of Pakistan completed the meeting of the Monetary Policy Committee on March 2 ahead of schedule. Along with this, it was also announced to increase the repo rate. The immediate effect of this decision to increase the repo rate was seen on the Pakistani currency.
The Pakistani rupee broke down to Rs 18.98 against the dollar on Thursday. At the end of trading, the Pakistani currency closed at Rs 285 against the dollar.
Will inflation reduce in Pakistan?
Pakistan has taken this decision to control inflation. Experts believe that this will reduce the propensity to spend among the common people and business. However, it will take time to see its effect. Most of the economists also say that the high interest rate will have a bad effect on the country’s economic growth.
