State Bank of Pakistan maintains interest rate amid IMF negotiations

The State Bank of Pakistan (SBP) is set to uphold its current 22 per cent interest rate during the upcoming policy meeting on Monday. This decision will mark the seventh consecutive meeting where rates remain unchanged, reflecting Pakistan's ongoing negotiations with the International Monetary Fund (IMF) for a new long-term funding agreement.

Pakistan's economic landscape has been shaped by the discussions with the IMF, as the country seeks to secure a $1.1 billion disbursement, which represents the final portion of a $3 billion Stand-By Arrangement. The SBP's steadfast approach to maintaining the interest rate underscores the stability efforts amidst these crucial financial deliberations.

As the central bank's decision aligns with the impending IMF Executive Board meeting, the focus remains on securing the necessary funding to bolster Pakistan's economic resilience. The continuity in interest rates signals a strategic stance aimed at fostering financial stability and reinforcing the country's economic foundation.