The cash-strapped country has been taking major measures to secure IMF funding, including raising taxes, removing blanket subsidies and artificially placing restrictions on the exchange rate. While the government is hopeful of striking a deal with the IMF soon, media reports say the agency is hopeful of a policy rate hike.
The next meeting of the monetary policy committee of the central bank is to be held on March 16. However, off-cycle rate reviews are not uncommon in Pakistan.
Adnan Sheikh, assistant vice president of research at Pak Kuwait Investment Company, said a rate hike is imminent, and it could happen by Friday.
“The next policy meeting is far away. Given the circumstances, its price is already being decided,” said Shaikh.
The State Bank of Pakistan (SBP) and the IMF did not immediately respond to requests for comment.