ISLAMABAD (Web Desk) – The State Bank of Pakistan (SBP) cut its key discount rate to 8.0 per cent from 8.5 per cent on Saturday, in line with analysts’ expectations and citing lower inflationary pressure due to falling global oil prices.

Analysts had been hoping for a cut, following a drop in inflation triggered by lower oil prices, even though the SBP cut the rate by one percentage point during its last meeting in January.

Nawaz Sharif government, which came to power in 2013, is under pressure to do more to revive the economy, solve crippling power shortages and create favourable conditions for badly needed foreign investment.

The International Monetary Fund (IMF) saved Pakistan from possible default in 2013 by agreeing to lend it $6.8 billion over three years.