The financial market expects the State Bank of Pakistan (SBP) to raise interest rates by 150 to 200 basis points in its next monetary policy on Monday.
The PMLN-led coalition government has fully complied with IMF conditions for program revival; State Minister for Finance Aisha Ghouse Pasha confirmed on Thursday that the government is ready to implement all IMF bailout requirements.
With inflation reaching 24.5 percent in December 2022, bankers, financial specialists, and analysts expect the SBP to raise its policy rate, but they are unsure of the amount.
The IMF requires a market-based exchange rate, higher electricity and gas costs, and new taxes to produce enough liquidity to cover the first-quarter fiscal slippage.
The state minister predicted business shifts after IMF restrictions. This indicates that the SBP policy rate will be raised to contain inflation, but the IMF criteria will generate considerably higher inflation with power and gas price hikes.
A survey conducted by Topline Research reported the market expects a 100–200 basis point interest rate increase. 74pc expect 100-200bps, 37pc 100bps, 18pc 150bps, and 19pc 200bps.
Since November 25, 2022’s monetary policy statement, SBP’s foreign exchange reserves have dropped $3bn to $4.56bn, facing external concerns. Due to massive debt and low inflows.
 to raise interest rates by 150 to 200 basis points in its next monetary policy on Monday.){kind=link}