Editorial with Sujit Nair: The Story Behind Pakistan's Economic Downfall

The State Bank of Pakistan has increased the interest rate by a massive 300 basis points (bps) taking it to a record-high level of 20 per cent, in accordance with the conditions set by the International Monetary Fund, The News International reported. The Monetary Policy Committee (MPC) which was constituted as a statutory committee under the State Bank of Pakistan Act has taken the decision to raise the policy rate to its highest level since October 1996 in an attempt to ""anchor inflation expectations as it is critical and warrants a strong policy response,"" as per the news report. As the country stands on the brink of an unprecedented economic crisis, our Managing Editor Mr Sujit Nair takes you through the timeline.