Monetary Policy at a Crossroads: Challenges Ahead for SBP’s Credibility
The State Bank of Pakistan (SBP) has strengthened its credibility through measured monetary policy decisions, but rising inflationary pressures, expanding money supply, and external pressures from the IMF pose critical tests. Experts highlight the need for cautious policy, transparent communication, and modern engagement strategies to maintain market confidence and economic stability.
State Bank of Pakistan Maintains Policy Rate at 11 Percent Amid Inflation and Economic Challenges
The State Bank of Pakistan has kept its policy rate unchanged at 11 percent, reflecting caution over rising inflation, flood-related disruptions, and weak growth indicators across the national economy.
Pakistan’s Headline Inflation Rises to 5.6% in September 2025 Amid Price Adjustments in Key Sectors
Pakistan’s consumer price index (CPI) inflation rose to 5.6% year-on-year in September 2025, driven by higher costs in education, health, and clothing, though food prices and recreation expenses showed moderate declines.
Pakistan Finance Ministry Projects September Inflation at 3.5–4.5% Despite Flood Disruptions
Pakistan’s finance ministry projects September 2025 inflation at 3.5–4.5%, balancing flood disruptions with stable manufacturing, remittances, and easing commodity prices.
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.