Pakistan Says IMF Agrees There Is Scope to Cut Rates
P akistan's top economic policy maker said the International Monetary Fund which gave the Asian nation a $7.6 billion bailout loan in November had agreed there is scope to lower interest rates. ``We were able to convince the IMF that as inflation is coming down we are looking at reducing interest rates in the next few weeks and months and they have agreed with us '' Shaukat Tarin finance adviser to Pakistan's prime minister told a news conference in Islamabad today. Tarin met with IMF officials in Dubai last week. Lower borrowing costs may help revive South Asia's second largest economy which is challenged by renewed tension between the Pakistan Peoples Party led coalition government and the biggest opposition party. In November the central bank raised its benchmark interest rate by two percentage points to 15 percent the highest in more than a decade as part of conditions for the IMF loan. ``Room has been provided for some sort o...