Islamabad: The International Monetary Fund (IMF) has demanded further increases in interest rates from Pakistan, stating that the current rates do not reflect ground realities.
According to details, the IMF has issued a regional economic outlook report for the Middle East and Central Asia.
The report states that Pakistan should increase interest rates to control inflation, as current rates do not reflect ground realities.
The IMF report stated that the burden of debt has increased significantly due to low interest rates, with the World Economic Outlook expecting Pakistan’s average inflation rate to be 27.1%.
According to the report, the State Bank has raised interest rates to the highest level of 21%, but the current rates are insufficient to control excessive spending.
The IMF stated that the inflation rate had risen to 36.4% in April and that Pakistan could face a trade deficit of $37.4 billion this year.