State banks of Pakistan has a right to change interest rates when it doesn't own the funds deposited in the banks. This is because monetary policy is conducted by state bank of Pakistan by using money supply (M2) Which is their intermediate target .So in order to control inflation State bank of pakistan used short term interest rates as a instrument for monetary policy. So with an objective to achieve price stability state bank of pakistan pursue monetary target regime with broad money supply known as M2 as a nominal anchor