SBP keeps key interest rate unchanged at 11.5%

KARACHI: Pakistan’s central bank left its benchmark interest rate unchanged at 11.5%, citing easing inflation and stable macroeconomic indicators while announcing its latest monetary policy for the next two months.

State Bank of Pakistan (SBP) Governor Jameel Ahmad said the Monetary Policy Committee (MPC) decided to maintain the policy rate at 11.5%, noting that inflation has continued its downward trend in recent years. He said average inflation stood at 5.5% between July and February.

Ahmad said Pakistan recorded a current account deficit of $139 million in fiscal year 2026 and projected the deficit to remain between 0% and 1% of GDP in fiscal year 2027.

The governor said workers’ remittances are expected to reach $20.2 billion by December 2026, despite global economic uncertainties.

 He added that exports and remittances remain the country’s primary sources of foreign exchange, while government measures are expected to support export growth during fiscal year 2027.

Ahmad also said imports are projected to increase in the current fiscal year, but external inflows are expected to remain strong.

He noted that Pakistan has continued to build its foreign exchange reserves despite meeting all external payment obligations and faces $21.5 billion in external debt repayments during fiscal year 2027.