Pakistan has been negotiating with the International Monetary Fund to secure a stalled loan package that it desperately needs amid a dire economic crisis and record inflation.

Pakistan's central bank has raised its benchmark interest rate by 100 basis points to 22 percent. Analysts say the decision was in line with the IMF's conditions for releasing 1.1 billion dollars in loans that has been held up since November.

Policymakers held an emergency meeting on Monday to discuss the interest rate. Islamabad has repeatedly appealed to the IMF to release the money. It is part of a 6.5 billion-dollar bailout package that is due to expire at the end of this month.

Last week, Pakistani Prime Minister Shahbaz Sharif met with IMF Managing Director Kristalina Georgieva in Paris. His office said Sharif explained that all the IMF's conditions had been met and he hoped that the funds would be released as soon as possible.

Economic analysts have warned that Pakistan risks defaulting on its debts without the IMF bailout as its financing options beyond June are uncertain.