No Result
View All Result
Monday, July 14, 2025
MM News
اردو
  • Home
  • Latest News
  • National
  • Dramas
  • Showbiz
    Dua-e-Khadija during Miss Global Pakistan 2025 (Image: Instagram/misspakistanglobal)

    Dua-e-Khadija from Peshawar wins Miss Global Pakistan 2025 crown

    Mohan Raj

    Video: Stunt artist Mohan Raj dies during car stunt for film

    Kahiin to hoga

    Why did Rajeev Khandelwal quit Kahiin To Hoga at the peak of his fame?

    Humaira Asghar

    Was Humaira Asghar murdered? Police probe unfolds with new findings

    (File Photo)

    Fiza Ali criticized for using Humaira Asghar’s death to gain views

    Son of Sardaar 2

    Ajay Devgn returns with laughter in ‘Son of Sardaar 2’ trailer

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
MM News
  • Home
  • Latest News
  • National
  • Dramas
  • Showbiz
    Dua-e-Khadija during Miss Global Pakistan 2025 (Image: Instagram/misspakistanglobal)

    Dua-e-Khadija from Peshawar wins Miss Global Pakistan 2025 crown

    Mohan Raj

    Video: Stunt artist Mohan Raj dies during car stunt for film

    Kahiin to hoga

    Why did Rajeev Khandelwal quit Kahiin To Hoga at the peak of his fame?

    Humaira Asghar

    Was Humaira Asghar murdered? Police probe unfolds with new findings

    (File Photo)

    Fiza Ali criticized for using Humaira Asghar’s death to gain views

    Son of Sardaar 2

    Ajay Devgn returns with laughter in ‘Son of Sardaar 2’ trailer

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
No Result
View All Result
No Result
View All Result
MM News
اردو
  • Latest
  • Showbiz
  • Thought Box
  • Business & Stock
  • Opinions
  • Technology
  • The Other Side-Pakistan
Home Opinion & Editorial Editorial

Monetary policy hike

Editorial by Editorial
April 11, 2022

With Parliament on hiatus, the State Bank of Pakistan held a Monetary Policy Committee meeting almost two weeks ahead of schedule, where it was decided to hike interest rates to try and control rampant inflation. After holding the rate steady at 9.75pc since January, the SBP had to finally raise its key policy rate by a hefty 250bps to 12.25pc.

In the year 2018, when Pakistan Tehreek-e-Insaf (PTI) took over the reins of the country, the interest rate in the country was 7%. However, due to the continuous increase in inflation and imbalance of payments, it has raised it to 12.25% today.

The bank also noted additional causes for concern, specifically external stability, which has largely been driven by the war in Ukraine and high oil prices. Despite the rate hike, the SBP continues to revise inflation for the ongoing year upwards, currently estimating that the number will exceed 11% for the fiscal year.

The bank also noted that “heightened domestic political uncertainty” contributed to the decline of the rupee and surge in local bond and Eurobond yields. The rise in interest rate will have a very negative effect on the corona-stricken economy, in particular, there will be a significant increase in the production costs of trade and industry.

Another concern is that Pakistan’s sovereign debt remains in “distressed debt” territory, according to news reports. That label means that banks and other investors consider Pakistan to be at high risk of defaulting on its debt, and the country must offer unusually high returns on financial instruments to make them attractive.

Meanwhile, foreign reserves remain under pressure as previously planned bond sales have been delayed, and refinancing with China has not been completed. Rising interest rates will accelerate the contraction of the economy. The current account deficit will not further exceed. Therefore, high interest rates are by no means a viable option for the economy.

ShareTweetSendShare
Previous Post

Ousted Imran Khan vacates Prime Minister House

Next Post

3 lessons about Ramadan

Related Stories

Opinion

Portugal and Pakistan: Building a Bilateral Bridge in a Fractured World

June 29, 2025
Opinion

A Peace Prize for Betrayals: Rethinking Pakistan’s Strategic Alliances

June 28, 2025
Opinion

“Run Lola Run” – More than a movie to cultural bridging

June 27, 2025
Opinion

Ceasefire or a Smokescreen? The US-Iran Next Dialogue of Disillusions

June 26, 2025
Opinion

Israel-Iran War and Supply Chain of World Economy

June 25, 2025
Opinion

Unleashed Modern-day Holocaust and the Global Collapse

June 23, 2025
Opinion

Firestorm in the Middle East: Global Stakes on Exploding Frontlines

June 19, 2025
Opinion

A Celebration of Shared Struggle and Future Aspirations

June 17, 2025
Opinion

A Strategic Leap, Not Just A Flight

June 16, 2025
Opinion

Russia Day 2025

June 15, 2025
Next Post

3 lessons about Ramadan

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Stories

gold image
Business & Stock

Gold price gains Rs1,600 per tola

by MM News Staff
July 14, 2025
(File Photo)
Crime

Mayor orders crackdown on drug addicts occupying Karachi streets and sidewalks

by MM News Staff
July 14, 2025
Dua-e-Khadija during Miss Global Pakistan 2025 (Image: Instagram/misspakistanglobal)
Fashion & Music

Dua-e-Khadija from Peshawar wins Miss Global Pakistan 2025 crown

by MM News Staff
July 14, 2025
Fight in Syria
Top News

Over 30 killed, 100 injured in armed clashes in Syria

by MM News Staff
July 14, 2025
(File Photo)
Business & Stock

PSX crosses 136,000 milestone with over 2200 points rally

by MM News Staff
July 14, 2025

Opinion

Munir-Ahmed
Portugal and Pakistan: Building a Bilateral Bridge in a Fractured World
June 29, 2025
- Munir Ahmed
munir ahmed oped
A Peace Prize for Betrayals: Rethinking Pakistan’s Strategic Alliances
June 28, 2025
- Munir Ahmed
munir ahmed oped
“Run Lola Run” – More than a movie to cultural bridging
June 27, 2025
- Munir Ahmed
No posts found
See all

Weather Updates

Image: Online
Weather

Parts of Punjab including Lahore receive heavy monsoon rains

by MM News Staff
July 14, 2025

A fresh spell of monsoon rains has lashed several parts of Punjab last night,...

File photo

PMD forecasts date for next monsoon spell in Karachi

July 12, 2025
file photo

Flood warning issued as heavy rain expected in parts of Pakistan from July 13-17

July 11, 2025
File photo

Monsoon rain-related incidents claim 87 lives across Pakistan: NDMA

July 10, 2025
See all

Prices

representative image
Business & Stock

Latest gold prices in Pakistan today- 14 July 2025

by MM News Staff
July 14, 2025

The following are the latest gold rates in Pakistan on Monday, 14 July 2025....

Fawad Hasan Fawad

Fawad Hasan Fawad questions govt’s $300m sugar import decision

July 13, 2025
(Toyota Indus Motor Company)

Toyota raises car prices in Pakistan: Check out new rates

July 13, 2025
representative image

Latest gold prices in Pakistan today- 13 July 2025

July 13, 2025
See all

Transport News

File photo
Top News

Pakistan Railways to launch business train between Karachi and Lahore

by MM News Staff
July 14, 2025

In a bid to modernize the country’s outdated rail infrastructure, Pakistan Railways is set...

representative image

How to buy a motorcycle under Punjab’s interest-free installment scheme

July 14, 2025
File Photo

Saudi Arabia’s low-cost airline Flyadeal launches flights to 4 Pakistani cities

July 13, 2025

How to apply for Ajrak number plate online

July 13, 2025
See all

MM Digital (Pvt.) Ltd.

MM News is a subsidiary of the MM Group of Companies. It was established in 2019 with the aim of providing people of Pakistan access to unbiased information. Contact Details: 03200201537

Quick Links

  • Home
  • Advertise
  • MM News Urdu
  • The Other Side-Pakistan
  • Contact Us
  • Privacy Policy

Top Pages

  • Latest News
  • Showbiz
  • OP-ED
  • Technology
No Result
View All Result
  • Latest News
  • Showbiz
  • Thought Box
  • Business
  • Opinions
  • Technology

© Copyright 2024 MMNews - All Rights Reserved.