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Summary
State Bank of Pakistan (SBP) has announced the monetary policy for the coming two months, Dunya News reported on Monday. Inflation has been declared as the biggest problem of Pakistan whereas the basic interest rate has been increased from 13.5 percent to 14 percent. The new monitory policy was announced during a meeting presided over by the president of State Bank Shahid Kardar in Lahore. According to the bank sources the interest rate has been increased in order to control inflation and to control the budget deficit due to increased number of loans taken by the government. The bank also decided that the provinces would not be given loans exceeding their revived limitations in future. According to the monetary policy inflation since the month of January this year has been 12.5 percent greater than its rate during the same period last year. Serious concerns were also shown during the meeting over the increased number of loans taken by the government.
