PIDE Warns of Significant Macroeconomic Risks to Pakistan Amid Middle East Energy Volatility
The Pakistan Institute of Development Economics issues a policy alert on how rising oil prices and Strait of Hormuz tensions could destabilize Pakistan’s inflation and reserves.
SBP Governor Projects Two Years of Economic Stability, Signals Caution on Interest Rate Cuts
SBP Governor Jameel Ahmad says Pakistan’s macroeconomic stability is likely to continue for two years, stressing cautious monetary policy, steady inflation, and disciplined post-IMF economic management.
Pakistan SBP Maintains Benchmark Interest Rate at 10.5% Amid Stable Growth Outlook
The State Bank of Pakistan keeps its policy rate unchanged at 10.5% in its first 2026 MPC meeting, citing steady inflation, improving economic growth, and resilient external accounts.
SBP Rate Cut Expected as 80% Market Participants See Easing in January 2026
A Topline Pakistan Research survey shows 80% of market participants expect the State Bank of Pakistan to cut interest rates at its January 2026 MPC meeting, with a 50bps reduction seen as the most likely outcome.
SBP Projects 3.25% GDP Growth for FY26 Amid Inflation and Structural Challenges
The SBP projects Pakistan’s GDP growth at 3.25% for FY26 while warning of inflation above 7% in H2. The report highlights structural weaknesses, fiscal and external pressures, and the need for reforms to sustain macroeconomic stability and private investment.
Federal Government Urges Provinces to Accelerate IMF Reforms Ahead of Key Review Deadline
The federal government has pressed Pakistan’s provincial administrations to urgently resolve pending IMF-related commitments and fiscal targets to ensure smooth progress in the second review of the $7 billion Extended Fund Facility (EFF), as well as the $1.4 billion Resilience and Sustainability Facility (RSF), with key reforms hanging in the balance.
SBP Ties Future Interest Rate Cuts to IMF Review and Flood Impact Assessment
The State Bank of Pakistan (SBP) has indicated that future interest rate reductions will depend on the outcome of the IMF review and the economic repercussions of recent floods, as the central bank adopts a cautious stance despite stabilizing inflation trends.