ISLAMABAD: Pakistan’s central bank is scheduled to convene a meeting today, Monday, to review the country’s overall financial situation before making any decisions about the policy rate.

The State Bank of Pakistan’s Monetary Policy Committee last met on April 4 when it raised the key interest rate by 100 basis points, bringing it to the highest-ever level of 21 percent, in an effort to control spiraling inflation.

Prior to that, the bank had increased the key rate by 300 basis points, raising the policy rate from 17 percent to 20 percent in a surprising move.

“The Monetary Policy Committee of SBP will meet on Monday, June 12, 2023, at SBP Karachi to decide about the Monetary Policy,” said an official statement released last week.

“The SBP will issue the Monetary Policy Statement through a press release on the same day,” it added.

Pakistan is currently facing significant economic challenges, including depleting foreign exchange reserves and a weakening national currency. The country has presented its new budget for the next fiscal year, although independent economists have criticized it as an inflationary plan, noting a lack of solid poverty alleviation measures.

The surging consumer prices in the country have become a serious concern for the government, especially after incidents earlier this year where more than a dozen people were killed in stampedes while trying to obtain rations.