BREAKING NEWS
Indian actor Pradeep Rawat dies at 74 after cancer battle • Mrunal Thakur warns of legal action over AI-generated deepfake content • Fazlur Rehman warns against politicizing debate over new provinces • Pakistan posts 387, secures first-innings lead over West Indies • Pakistan exempt from new US visa bond program • Trump voices concern over oil company profits amid Iran conflict • West Indies all out for 344 against Pakistan in first innings • Cristiano Ronaldo reportedly set to marry Georgina Rodriguez on Aug 8 • Trump says Gulf States backed diplomatic path with Iran • Fuel theft surges across UK as rising prices drive daily losses • Why ‘Inception’ remains one of Hollywood’s most rewatchable films • ‘Spider-Man: Brand New Day’ opens with $355m worldwide • Secret wedding allegation involving Varma and Urmila resurfaces • Bilawal Bhutto alleges rigging in AJK elections • PM orders comprehensive performance review of federal ministries
Advertise with us >

SBP

SBP keeps key interest rate unchanged at 11.5%

by
SBP

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.

SBP keeps policy rate unchanged at 11.5% amid inflation pressures

by
SBP keeps

KARACHI: The State Bank of Pakistan has decided to keep its key policy rate unchanged at 11.5%, the central bank announced on Monday following a meeting of its Monetary Policy Committee chaired by Governor Jameel Ahmad.

The central bank said inflation had re-entered double digits in April and May, adding that it expects price pressures to remain in the double-digit range in the coming months before gradually easing.

It noted that geopolitical tensions in the Middle East have pushed up energy, transport and production costs, increasing inflationary pressure on the economy.

The SBP said its provisional estimate for real GDP growth in fiscal year 2025-26 stands at 3.7%, reflecting an improvement over the previous year.

It added that large-scale manufacturing grew by 6.5% from July to March, with industry and services contributing significantly to overall growth.

The current account recorded a $300 million deficit in April, but the central bank expects the full-year deficit to remain at the lower end of earlier projections due to strong remittances.

Foreign exchange reserves stood at $17.2 billion as of June 5 and are projected to reach $18 billion by the end of the month.

The SBP said the government has set a primary budget surplus target of 2.5% of GDP for FY2025-26 and 2% for the following year, while stressing the need for fiscal discipline, tax base expansion and reforms in state-owned enterprises for sustainable growth.

The Monetary Policy Committee said it will continue to closely monitor inflation trends, global developments, and changes in fuel, electricity and food prices.

Meanwhile, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) rejected the decision, saying high interest rates are harming industry, exports and investment, and urged the SBP to bring rates down to single digits in the next policy meeting.

SBP’s mid-year policy report points to stronger economic momentum

by
SBP’s mid-year policy

ISLAMABAD: The State Bank of Pakistan (SBP) on Monday released its biannual Monetary Policy Report, highlighting a noticeable improvement in the country’s macroeconomic conditions and outlook, supported by a cautious monetary policy stance and ongoing fiscal consolidation.

According to the report, inflation is expected to remain within the target range of 5 to 7 percent for most of FY2026 and FY2027, although some short-term volatility may occur.

The SBP stated that the current account deficit in FY2026 is projected to remain between 0 and 1 percent of GDP. While the trade deficit is expected to stay elevated, it will likely be partially offset by strong workers’ remittances and planned official inflows.

As a result, Pakistan’s foreign exchange reserves are projected to reach $18 billion by June 2026 and further increase in FY2027, approaching nearly three months of import cover.

The report also noted that continued macroeconomic stability, easing financial conditions, and the recent reduction in the Cash Reserve Requirement (CRR) to 5 percent have contributed to stronger economic activity.

Consequently, growth prospects have improved, with real GDP growth for FY2026 now projected between 3.75 and 4.75 percent, while economic growth is expected to strengthen further in FY2027, reflecting a gradual and sustained recovery trajectory.

Pakistan receives $1.2b tranche from IMF

by
Pakistan receives

ISLAMABAD: The State Bank of Pakistan (SBP) has received a $1.2 billion installment from the International Monetary Fund (IMF).

Sources confirmed that the funds have been transferred to the SBP account. The IMF had approved the disbursement for Pakistan on 8 December.

The amount represents the third tranche under the current IMF loan program. In addition, the IMF has released an extra $20 million for Pakistan to support climate change-related initiatives.

Fintech Revolution: How Digital Banks Are Changing Pakistan’s Economy

by
Fintech Pakistan, Digital Banks, SBP, Financial Inclusion, Economy 2025


Pakistan’s new wave of digital banks is transforming financial access, driving inclusion, and redefining how millions save, spend, and invest.


Pakistan’s fintech landscape is evolving rapidly in 2025 as fully digital banks begin to reshape the country’s financial ecosystem. Licensed by the State Bank of Pakistan, these digital-first institutions are introducing seamless mobile banking, faster credit approvals, and low-fee financial services for individuals and small businesses.

Startups such as Sadapay, NayaPay, and Easypaisa are leading this revolution by integrating modern digital tools, biometric verification, and AI-based customer support. As a result, over 20 million Pakistanis now use digital wallets — a milestone that signals a major shift from cash dependency to digital transactions.

Economists believe this transformation could add billions to the national GDP over the next few years. “Fintech is more than convenience — it’s a foundation for inclusive growth,” said an analyst from Business Recorder. Rural areas, previously underserved by traditional banks, are gaining new access to digital credit and remittance options.

However, experts warn that cybersecurity, digital fraud, and low financial literacy remain challenges. The State Bank’s new Fintech Regulatory Sandbox aims to balance innovation with safety, ensuring growth without compromising trust.