KARACHI: In attempts to bail out a defaulter, the Pak govt on Thursday approved to another demand by the IMF. As per the demand, the Pakistan govt hiked the electricity charges by PKR 3.23 per unit for electricity consumers across the nation.
As per reports, sources in the know stated that the decision was taken to generate PKR 335 billion more in revenue over the next fiscal year to finance the power sectors of the cash-strapped nation.
Meanwhile, Pakistan’s central bank, the State Bank of Pakistan, hiked its key policy rate by 300 basis points to a 27-year high. The 20 percent interest rate was the “highest in Asia”. The decision was taken during the Monetary Policy Committee meeting which was preponed to March 2. The historic interest hike will add to the woes of Pakistanis who are already struggling with skyrocketing inflation.
Pakistan Foreign Minister Ishaq Dar said in a tweet on Thursday that the country is likely to strike the IMF agreement next week “as the negotiations are about to conclude”.
Pakistan has been facing an economic crisis and is in conversation with the IMF for the release of at least a $1 billion tranche from the $6.5 billion bailout to avoid an economic meltdown.