Interest rate increases
There is bad news for Pakistan that, there is an increasing interest rate here day by day. According to a recent report by Central Bank, there are a lot of reasons to increase these rates day by day.
One reason is also that there is a lack of resources now. But this is not a valid reason. Because this is true that when the bank began reducing its financial boost last month by arising. The rate of policy by 26bps to 7.56pc then risks of escalation and the balance of payments were already cleared.
But then after a while, it declared to move slowly so as not to prop the development boat. Because at that time the government thought that it could still persuade the IMF about the stability of its account and get its way.
But after a while, the Fund denied signing the agreement to Islamabad. It took precede actions to shift from the growth to the equalization apparatus. But there is now something new happening in Pakistan.
After these increases in inflation, there are many other actions include which changes in the SBP Act to exempt the bank from the finance ministry’s authority. It increases electricity charges and tax combination through increased toll income and slit in development expanding.