The State Bank of Pakistan (SBP) reduced interest rates to 11 percent.

The State Bank’s Monetary Policy Committee’s decision came in a wake of economic difficulties due to ongoing Coronavirus pandemic.

SBP called an emergency meeting in which decision made to reduce by 150 basis points.

The policy rate has dropped by 150 basis points to 11%.

According to the statement released by SBP, substantial new information on global and domestic developments has become available since the last MPC meeting.

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The developments discussed during the meeting imply that the outlook for growth and inflation in Pakistan is likely to be revised down further, the statement further added.

Earlier, to support Pakistan’s exporters that are facing liquidity problems because of declining orders due to COVID-19, SBP has announced three relaxations to help avoid penalties and keep exporters’ borrowing limits intact for next year.