Dawn
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03:16 Apr 26, 2026
KARACHI: It appears that the financial market is certain that the interest rate is bound to see a rise in the next monetary policy scheduled for Monday. At the same time, most experts believed that it was not inflation but the growing fears in the region, including Pakistan, due to the Gulf war, that would determine the direction of monetary policy. “The risks in the Gulf war are unseen and so uncertain that nobody can claim that the economy of Pakistan and other countries like it would remain in the same shape as it is now,” said a financial expert. He added that inflation could entirely change the economy, with greater uncertainty, in the form of a sharp decline in manufacturing and a further increase in existing poverty. Experts see 100bps hike in SBP committee’s meeting on Monday The short-term inflation hit 14 per cent during the week that ended on April 23, reflecting the mood of headline inflation. The government has again increased diesel and petroleum prices, an approach to shield against possible fu...