Expensive loan shock to the people of Pakistan, Pak Central Bank has reduced the interest rate to 22 percent

Pakistan Interest Rate Hike: The people of Pakistan, who are struggling with inflation and economic crisis, have got a big blow. Taking loans from banks has become more expensive for the people of Pakistan. An emergency meeting of the Central Bank of Pakistan has taken place today. And in this meeting, the Central Bank of Pakistan has increased its policy rates by 100 basis points i.e. 1 percent to 22 percent.

The Parliament of Pakistan has again passed its annual budget. So that he can get a bailout package of one billion dollars under the program of the International Monetary Fund, which is expiring on 30 June. Tax has been increased in the budget. The very next day, in view of the strict monetary policy, the Central Bank of Pakistan has also increased the interest rates by one percent, making the loan costlier. Since April 2022, the Central Bank of Pakistan has increased interest rates by 12.25 percent so far to curb inflation. Central Bank said that its Monetary Policy Committee has taken cognizance of two important domestic developments since its last meeting.

In which the first is that the outlook for inflation has worsened due to which the financial condition may be negatively affected. Along with this, in the budget of the financial year 2023-24, it has been decided to increase the tax, duty and tax on petroleum products. The MPC of the Central Bank believes that due to the imposition of additional tax, there is a danger of increasing inflation directly or indirectly.

Let us tell you that the rate of inflation is continuously increasing in Pakistan and it has reached close to 40 percent. Foreign debt has reached 23 billion dollars. He has to pay $ 1.6 billion in debt in July, which is the biggest challenge before him.

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