PPP concerned over increased interest rate

F.P. Report

ISLAMABAD: Senator Sherry Rehman has expressed that government increased interest rates on the orders of IMF. She said government was ruining the economy in a hurry.

The PPP’s parliamentary leader said these steps are being taken before the implementation of IMF plan. She said hike in dollar rate is also part of these steps, adding that interest rate and inflation would rise in next six months.

She said stock exchange saw a bearish trend today and government is acting like a silent spectator. She added that increase in interest rate by SBP would increase inflation and unemployment.

Earlier today, the State Bank of Pakistan (SBP) increased the key interest rate by 150 basis points to a record high at 12.25 percent to slow down increasing inflationary pressure.

The government of Pakistan has also reached a staff-level agreement with the International Monetary Fund for 39-month long Extended Fund Facility of around US$ 6.0 billion.

The program is designed to restore macroeconomic stability and support sustainable economic growth, and is expected to unlock considerable additional external financing.