The State Bank of Pakistan on Saturday announced to cut the interest rate by 100 basis points from 8.0% to 7.0%, the lowest policy rate, effective from May 24.

The announcement surfaced as part of SBP’s new monetary policy for the next two months.

Country’s premier monetary bank expressed its satisfaction over the ongoing economic development in Pakistan. It noted the foreign investment has helped country develop economically.

The bank however went on to say that government’s revenue collection remained a bit slower in the fiscal year. The report has appreciated the efforts of federal government to contain the financial deficit of the country.