Pakistan Banking Sector Cuts ERF Markup to 4.50% to Support Exporters and Economic Recovery
Pakistan’s banking sector announces a voluntary 3% reduction in the Export Refinance Facility markup, lowering the end-user rate to 4.50% to ease financing costs for exporters and strengthen foreign exchange inflows
Pakistan’s Economy Set for Up to 4.75% Growth in FY26, SBP Signals Recovery Across Key Sectors
State Bank of Pakistan raises FY26 growth forecast to 3.75–4.75%, highlighting stronger domestic demand, resilient agriculture, and manufacturing gains, amid easing financial conditions and IMF program support.
State Bank of Pakistan Reduces Policy Rate to 10.5% Amid Economic Recovery
The State Bank of Pakistan’s Monetary Policy Committee (MPC) unexpectedly cut the policy rate by 50 basis points to 10.5%, reversing four consecutive meetings of unchanged rates and marking total easing of 1,150bps since the 22% peak.
Private Sector Credit Surges 12% in FY25, Signaling Economic Rebound
Private sector borrowing rose by 12% in FY25, marking a healthy recovery in bank credit and signaling growing business confidence amid falling interest rates and improving economic sentiment. Analysts predict the trend will continue into FY26.