The International Monetary Fund (IMF) has demanded Pakistan to increase the policy rate further.
The IMF says that the policy rate needs to be increased further to stabilize inflation.
IMF Mission Chief Nathan Porter, speaking to a foreign news agency, said that talks are ongoing with the Pakistani authorities to determine the targets in the next budget targets.
Nathan Porter says that determining the budget targets, especially the fiscal deficit, is one of the last hurdles in the way of the staff level agreement.
On the other hand, according to the outlook report of the international organization, the average rate of inflation in Pakistan this year will be 27 percent, the economic growth rate of Pakistan in the current financial year is likely to be 5 percent.
According to the World Organization, Pakistan’s budget deficit this year is 6.8 percent, while next year it is estimated to go up to 8.3 percent.
It should be noted that the current rate of interest in Pakistan is 21%.
