Pakistan raises rates by 300bp as default risks rise

Authorities struggle to collect taxes and unlock IMF funds

state-bank-of-pakistan-sbp
The State Bank of Pakistan
Photo: SBP/Abbas Ali Khan

The State Bank of Pakistan hiked its policy rate by 300 basis points on March 2, to 20%. This was the largest of nine increases since September 2021, totalling 1,300bp.

The SBP’s monetary policy committee moved as the country continues to grapple with spiralling inflation, a wilting currency and a real risk of default. Pakistan has struggled to meet IMF conditions to unlock funding from a 2019 loan package.

Year-on-year headline inflation rose to 31.5% in February, from 27.6% in January. The

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.