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.