The State Bank has increased the interest rate by one percent and the State Bank has increased the interest rate from 10.5 percent to 11.5 percent. Traders and industrialists have rejected the increase in interest rates, calling it harmful to the country’s industry and exports and will further increase inflation in the country.

Industrialists say that due to the situation in the Middle East, the cost of production has already increased significantly due to the increase in the prices of petroleum products. On the other hand, the State Bank statement has stated that the Monetary Policy Committee has decided to change the interest rate due to the situation in the Middle East.

According to the State Bank spokesperson, the decision on the interest rate was made after a long meeting of the Monetary Policy Committee.

According to the announcement, the Monetary Policy Committee decided to change the interest rate due to the situation in the Middle East. The rising price of oil in the global market and the supply chain affected the economy. The inflation scenario in Pakistan also changed. The Monetary Policy Committee of the central bank increased the interest rate by 100 basis points, after which the interest rate has increased from 10.50 percent to

Economists are citing the increase in the price of petroleum products due to the Middle East war and economic uncertainty in the global market as the main reasons for the increase in interest rates.

It should be noted that in the previous review, the State Bank had maintained the policy rate at 10.5 percent and in the meeting to be held today, the interest rate has been increased from 10.5 percent to 11.5 percent under the new monetary policy.

Experts say that the State Bank’s decision will also have a direct impact on inflation because the increase in the prices of petroleum products has a direct impact on daily necessities.