Pakistan govt agrees to increase policy interest rate by 2% to meet another condition set by IMF

Pakistan's government has agreed to increase the policy interest rate by two per cent to meet another condition set by the International Monetary Fund (IMF). The current interest rate is 17 per cent.

With the new decision, Pakistan has accepted another pre-condition of the IMF for the release of US Dollars 1.1 billion in critical funding, a part of the 6.5 billion dollars



bailout package.

Pakistan has announced the increase in interest rate based on rates the government set in the auction to raise domestic debt.

The decision by Pakistan authorities will push the interest rate to 19 per cent, just below the previous record of 19.5 per cent set in October 1996.