The article analyzed how monetary policy in Pakistan from 2001 to 2009 affected inflation. They looked at interest rates and exchange rates as tools to control inflation. The study found that despite attempts to control inflation with both tight and loose monetary policies, inflation remained high in 2007-08 and 2008-09. Inflation was even lower than the base period in 2002-03. The research showed that external factors like weather and law and order can impact inflation more than monetary policy. The study also found that government borrowing was a major reason why interest rates in the market did not decrease.