Soaring prices have put pressure on household budgets and left many desperate, with at least 16 people killed in stampedes for food aid last week.
Food, beverage, and transportation prices have all surged more than 45% and the country is in talks with the International Monetary Fund to unlock its next tranche worth around $1.1 billion as part of a $6.5 billion bailout agreement reached in 2019.
In early March, the bank raised its key rate by 300 basis points to 20%, exceeding market expectations, likely to meet a key requirement of the IMF for release of the pending bailout funds.
In its statement, the SBP reemphasized that the early conclusion of the ninth review of the IMF program was critical to rebuild FX reserve buffers.
Source- Hindustan Times.