State Bank of Pakistan Keeps Policy Rate Unchanged at 11.50%

Karachi: The State Bank of Pakistan (SBP) has announced its monetary policy for the next two months, keeping the policy interest rate unchanged at 11.50%.

Announcing the decision, SBP Governor Jameel Ahmad said the Monetary Policy Committee (MPC) had decided to maintain the benchmark interest rate at its current level of 11.50%.

The governor noted that inflation has followed a downward trend over the past few years, with average inflation standing at 5.5% between July and February.

He said Pakistan’s current account deficit for fiscal year 2026 stood at $139 million, while it is projected to remain between 0% and 1% of GDP in fiscal year 2027.

Jameel Ahmad added that workers’ remittances are expected to reach $20.20 billion by December 2026, despite global economic uncertainties. He said exports and overseas remittances remain the country’s key sources of foreign exchange, and government efforts are expected to improve exports during fiscal year 2027.

The governor also highlighted that Roshan Digital Accounts have attracted approximately $300 million over the past four months.

He further stated that imports are expected to increase during the current fiscal year, while foreign inflows are also projected to remain strong. Despite external debt repayments, Pakistan has continued to build its foreign exchange reserves.

According to the SBP governor, Pakistan is expected to make $21.5 billion in external debt repayments during fiscal year 2027, while maintaining a stable external sector supported by improved inflows and reserves.