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.
State Bank of Pakistan Maintains Special Cash Reserve Account Rate at 3.27% for October 2025
The State Bank of Pakistan has kept the Special Cash Reserve Account rate at 3.27% for October 2025, maintaining stability for U.S. dollar-denominated deposits and supporting liquidity management across the banking system.
Pakistani Banks Face Rs1 Trillion Deposit Withdrawals in Just Two Months
Pakistan’s banking sector saw withdrawals exceeding Rs1 trillion in July and August 2025, as depositors shifted funds amid falling interest rates and stricter tax enforcement. Experts warn the trend could pressure liquidity and lending capacity across the financial system.
SBP Policy Rate Expected to Hold at 11% as Flood-Driven Inflation Risks Weigh on Outlook
State Bank of Pakistan is likely to keep the policy rate unchanged at 11% in its September 2025 meeting as floods drive inflation risks and currency pressures persist.
The Mirage of Moderation: Pakistan’s Inflation Story
Pakistan’s official inflation data shows a sharp slowdown, but for households struggling with food, fuel, and utility costs, the relief feels like an illusion. Disinflation hides a deeper crisis in measurement, policy, and lived experience.
Pakistan’s Foreign Reserves Triple Without New Debt as SBP Charts Stability Path
Pakistan’s foreign exchange reserves have tripled to $14.5 billion without new debt, inflation has dropped to record lows, and the current account shows a surplus after 14 years, according to SBP Governor Jameel Ahmad, who also announced new digital finance initiatives to strengthen long-term stability.
Bank Deposit Rates Slide to 3.35% in June Amid Persistent Negative Real Returns
Pakistan’s average bank deposit rate declined by 14 basis points to 3.35% in June 2025, with real returns staying negative amid stubborn inflation. The latest SBP data reflects tightening spreads and ongoing pressure on savers despite a growing deposit base.
NIBAF Delivers In-Depth Training on Monetary Policy Implementation to SBOTS-27 Officers
NIBAF organized a dedicated training session on monetary policy implementation for officers of the SBOTS-27 batch, focusing on policy transmission, central bank tools, and SBP’s role in financial system stability.
State Bank’s Foreign Reserves Surge to $14.5 Billion, Boosting Pakistan’s External Position
Pakistan’s foreign exchange reserves under the State Bank surged by $1.77 billion in a week to $14.5 billion, pushing total reserves past $20 billion, driven by official inflows that strengthen the country’s external financial position.
KSE-100 Ranks Among World’s Top Three Performing Indices in FY25, Surpassing US, India, and Germany
The Pakistan Stock Exchange delivered a 55.5% return in USD terms for FY25, placing the KSE-100 Index as the third-best performing market globally, ahead of indices in the US, India, and Germany, according to a report by Arif Habib Limited.