State Bank of Pakistan Wednesday increased the discount rate by 200 basis points. Governor, SBP Dr. Shamshad Akhtar made the above announcement during a press conference. Announcing the interim monetary policy, she said the rate of Consumer Price Index (CPI) rose to 35 per cent while the core inflation climbed to 21.7 per cent and the rate of inflation soared to 25 per cent. She said that the 35 percent increase in the import is unbearable. Shamshad Akhtar observed that the solution of the fiscal problems of Pakistan is difficult and complicated. She indicated that the government expenses were enhanced more than the available sources in the system. The current deficit during the last four months reached to 5.9 billion dollars, the governor SBP said. The food inflation has reached to 34 percent, she said adding that there is the need of decreasing inflationary tendencies in the system.