Photo: filePakistan’s economy and capital markets are expected to face mounting pressure when the country returns to work from Eid holidays on Friday in the wake of an aggressive hike in the benchmark interest rate by the US Fed and a rebound in international oil prices during the long break. The US central bank, Federal Reserve, has increased its benchmark interest rate by half a percentage point, which is the biggest hike in two decades in the history of America. The latest trade data suggests that Pakistan’s oil import bill has continued to rise due to persistent increase in global energy prices. “The surge in global energy prices (during Eid holidays) will further widen the energy import bill for Pakistan,” he said. Earlier, the SBP increased the benchmark interest rate by a massive 250 basis points to a two-year high at 12.25% in an emergency meeting on April 7.

Source: The Express Tribune May 06, 2022 09:39 UTC