IMF Urges Pakistan to Adopt “Toughest” Monetary Policy Amid Rising Oil Prices

Islamabad (Qudrat Daily) – The International Monetary Fund (IMF) has urged Pakistan to implement the “strictest” monetary policy, raising concerns that interest rates may rise further.

According to sources, the IMF has warned Pakistan of potential economic risks, emphasizing that due to the escalating situation in the Middle East and rising inflation, the State Bank of Pakistan must maintain a stringent monetary policy.

The IMF highlighted that the ongoing tensions in the Middle East could trigger a sharp rise in regional inflation. It stressed that if inflation accelerates, the State Bank would need to increase interest rates proportionately. The IMF will continue to closely monitor the central bank’s decisions.

Sources also revealed that a special action plan is being developed to boost remittances in Pakistan. The IMF expects the plan to be finalized by May 2026, aiming to stabilize dollar inflows into the economy and strengthen the monetary policy framework.