The Pakistan government has agreed to increase the policy interest rate, which stands at 17 per cent by two per cent or 200 basis points to meet another condition set by the International Monetary Fund (IMF), The Express Tribune reported.

With the new decision, Pakistan has accepted another pre-condition of the IMF for the release of USD 1.1 billion in critical funding, a part of the USD 6.5 billion bailout package, the report said, adding that Pakistan has announced the increase in interest rate based on rates the government set in the auction to raise domestic debt. The decision by Pakistan authorities will push the interest rate to 19 per cent, just below the previous record of 19.5 per cent set in October 1996, The Express Tribune reported.