SBP Likely to Cut Policy Rate by 50bps Amid Falling Inflation and Stronger FX Reserves
A Reuters poll shows most analysts expect the State Bank of Pakistan to cut its policy rate by 50 basis points on Jan 26, supported by easing inflation, stronger reserves and a stabilising rupee, despite lingering risks.
Pakistan’s Private Sector Borrowing Drops 79% in 1HFY26 Despite Lower Interest Rates
Private sector borrowing from commercial banks declined by 79% during July–December FY26, SBP data shows, highlighting weak credit demand despite aggressive monetary easing.
Defying the Consensus: What Drove the SBP’s Unexpected 50bps Rate Cut
The State Bank of Pakistan surprised financial markets by cutting its policy rate by 50 basis points despite expectations of no change. This article breaks down the inflation outlook, growth signals, external sector risks, and fiscal challenges that shaped the central bank’s decision and what it means for Pakistan’s economic trajectory.
Pakistan Inflation Falls Within SBP Target in FY26, Core Inflation Remains Sticky
Pakistan’s headline inflation has eased into the SBP’s 5–7% target range in early FY26, but elevated core inflation highlights lingering structural pressures.
IMF Stresses Energy, Governance, and Fiscal Reforms for Pakistan’s Extended Fund Facility
The IMF highlights the need for structural reforms in Pakistan’s energy sector, state-owned enterprises, governance, and fiscal policies under the Extended Fund Facility, while underscoring macroeconomic stability, targeted social safety nets, and market-driven exchange rates.
SBP Defies Consensus With Early Rate Cut as Inflation, Growth Signals Shift
An analysis of the State Bank of Pakistan’s unexpected 50 basis point policy rate cut, unpacking the inflation outlook, growth signals, external stability, and fiscal risks that shaped the MPC’s decision.
SBP Foreign Exchange Reserves Cross $15.8bn After $1.2bn IMF Inflow
Pakistan’s foreign exchange reserves held by the State Bank of Pakistan have exceeded the December 2025 target after IMF inflows under EFF and RSF, with reserves projected to reach $17.8bn by June 2026.
Pakistan Industrialists Push for SBP Policy Rate Cut to Stimulate Business Activity
Leading industrialists, including Musadaq Zulqarnain and Gohar Ejaz, have urged the State Bank of Pakistan to reduce the policy rate from 11% to support economic growth, exports, and industrial competitiveness, ahead of the final MPC meeting of 2025.
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.
SBP Targets Rs5.45 Trillion Through Treasury Bills and PIB Auctions Amid Fiscal Financing Push
State Bank of Pakistan releases auction calendar targeting Rs5.45 trillion through MTBs and PIBs from December 2025 to February 2026 to meet government borrowing needs.