ISLAMABAD: The International Monetary Fund (IMF) has urged the State Bank of Pakistan (SBP) to maintain a strict monetary policy in light of rising tensions in the Middle East.
According to sources from the Ministry of Finance, the IMF expressed concern that the ongoing regional unrest could trigger an unusual surge in inflation.
It recommended that the central bank adjust interest rates proportionately if inflation rises due to the situation. The IMF also planned to closely monitor all decisions made by the State Bank in this regard.
The ministry officials said Pakistan has assured the IMF that global food and fuel prices are being closely monitored, and that policy adjustments will be made if the situation intensifies.
Additionally, the IMF emphasized the need to stabilize the interbank market and enhance transparency to boost reserves.
