Global interest rates are rising, causing inflation all over the globe. Especially in my nation, where the State Bank raised interest rates by 300 basis points in March 2023, the highest rate since 1996. This is a very troubling time for Pakistan, as the interest rate has risen to 20%.

PAKISTAN FACES CONCERNING TIMES WITH HIGHEST INTEREST RATES AND RISING INFLATION RATES

Pakistan is at the top of the ranking of countries with higher interest rates. This is a very worrying time, especially after the surprise announcement of the interest rate by SBP. The KSE 100 index points fell dramatically after State Bank announced its interest rate. The stock market has suffered as the index has dropped to 39600 at the moment of writing.

I live in a country that pays me around 20% APR, which is now equivalent to #HBD APR. If I put my money, I can easily make 20% profit, which is great for investors, but inflation will rise as well. Commodity prices have risen, and poor people are suffering as a result of the situation.

This is the first time in my lifetime that I have seen banks offer 20% interest. I recall buying bread for 2RS and 4RS as a child. However, those breads are now offered at prices ranging from 30RS to 50RS. Similarly, food prices have skyrocketed, and petroleum prices have skyrocketed.

1 litre of Petrol costs RS272, which is nearly equivalent to $1. Employees' typical salaries range between 25 and 30K RS, which is not comparable with inflation. In the past, it was challenging for poor people to survive against inflation, but now that the situation has changed, middle-class people are also affected by inflation.

It is extremely difficult for any citizen when the price of goods rises while wages are reduced. If these conditions persist, crime will rise and burglary will reach an all-time high. The government must consider it and make serious decisions for the sake of the country's existence; otherwise, we will follow Sri Lanka's example.

RAISING INTEREST RATES CAUSES INFLATION AND ECONOMIC CRISIS

It is obvious that raising interest rates will have an effect on all prices. Inflation will rise, making it difficult for people to make a living. Companies and other small businesses will close, and the nation will face a financial and economic crisis.

The stock market will decline, and the value of the currency will continue to fall. Right now, I'm checking the stock market shares, and I'm seeing only a few green prices, while the rest is bleeding. Only a few bank shares are up, while the rest are down significantly. This will irritate investors, who may withdraw their money from the stock market.

Our currency has depreciated against all other currencies, particularly the US dollar; $1 is now worth 294 RS, compared to 170 RS a year ago. This is nearly 100 times the rise in the dollar rate against the Pakistani rupee. Many investors have been forced to abandon their plans to engage in the dollar and cryptocurrency markets as a result of this. New investors cannot enter the crypto market because they can't buy dollars at such high prices.

This is the latest news from Pakistan regarding interest rates and high inflation, which has alarmed the entire nation. We have an upcoming election, but the election commission has clearly declared that we do not have enough funds to hold elections in 2024. This may cause even more confusion among citizens, and the government is in a difficult situation in which they must devise a better policy for the benefit of the nation.

This is an attempt on my side to inform you about the country's situation and the recent increase in interest rates by 300 basis points to 20%. I hope you like the content and that it is informative as well. If you liked the post, please leave a review in the section below to help the next one be even better. Thank you for sticking with me until the finish.

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REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.

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