Pakistan’s Growth Strategy Faces Major Setback as Middle East Conflict Triggers Oil Shock and Economic Pressure
Pakistan’s economic recovery plans are under pressure after the prolonged US-Iran conflict disrupted global energy markets, raised oil prices, and threatened inflation, exports, and currency stability. Policymakers are now being urged to accelerate austerity reforms, widen the tax base, and push investment-led growth.
State Bank of Pakistan Expected to Keep Policy Rate at 10.5% as Oil Prices and Regional Tensions Pressure Inflation
Pakistan’s central bank is widely expected to keep the policy rate unchanged at 10.5% as rising global energy prices, regional tensions, and inflation risks limit the space for further monetary easing.
UAE Rolls Over $2bn Pakistan Debt for One Month at 6.5% as Talks Continue
The UAE has rolled over $2 billion of Pakistan’s debt for one month at a 6.5% interest rate, providing short-term relief as Islamabad seeks a longer two-year rollover at lower cost.
Pakistan Social Protection Spending Falls Despite IMF Commitments in FY26
Pakistan’s social protection spending declined by 7.5% to Rs144.9 billion during July–November FY26 under BISP, despite IMF commitments to expand cash transfers, according to the Ministry of Finance.
Pakistan Requests Two-Year Rollover and Interest Rate Reduction on $2.5bn UAE Debt
Pakistan has requested the UAE to roll over $2.5 billion in maturing debt for two years and cut interest rates, as the country navigates external financing pressures and works with the IMF and World Bank to stabilise its economy.
Finance ministry warns limited SIFC transparency may weaken investor confidence
Pakistan’s finance ministry notes that limited public disclosure around SIFC initiatives could affect policy predictability and investor confidence, under IMF-linked governance reforms.
Pakistan PPP Contingent Liabilities Exceed Rs472bn as Sindh Leads Exposure
Pakistan’s contingent liabilities from public-private partnership projects have crossed Rs472 billion by December 2025, with Sindh accounting for over 70 percent, according to the Ministry of Finance under an IMF-mandated fiscal risk framework.
PakBanker: 2025 Economic Year in Review — Stabilisation, Compression, and the Narrow Bridge to 2026
An in-depth look at Pakistan’s economy in 2025, examining how IMF-backed stabilisation, tight monetary policy and digital governance reforms restored control without reigniting growth, and what this fragile recovery means as the country heads into 2026.
IMF Praises SBP’s Tight Monetary Policy for Stabilising Pakistan’s Economy
The IMF has backed Pakistan’s tight monetary policy, praising the State Bank of Pakistan’s role in anchoring inflation, strengthening financial stability, and managing flood-related economic shocks.
SBP Likely to Maintain Policy Rate at 11% in December 15 Meeting
The State Bank of Pakistan is expected to keep its policy rate unchanged at 11% in its December 15, 2025 meeting, as rising inflation risks and external sector pressures prompt a cautious monetary stance.