Pakistan Investment-to-GDP Ratio Stays at 13.8% as Regional Peers Maintain 30%+ Levels
Pakistan’s investment-to-GDP ratio remains at 13.8% in FY2025, far below India, Vietnam and Bangladesh, as structural barriers, fiscal dominance and weak investor sentiment limit capital formation.
SBP Holds Policy Rate at 10.5% as M2 Expands and PSX KSE-100 Surges in January 2026
SBP keeps policy rate at 10.5% in January 2026 while money supply grows 2.3%, private sector credit rises, and PSX KSE-100 gains 10,120 points.
Money supply growth and PSX rally point to stronger business confidence in FY2026
Pakistan’s monetary and capital market indicators improved in Jul–Dec FY2026, with higher money supply growth, rising private sector credit for investment, and a strong rally at the PSX reflecting better business sentiment.
Pakistan Banking Sector Fuels Economic Recovery with Rs 1.5 Trillion Private Credit Surge
Pakistan’s banking sector has emerged as a key driver of economic recovery, with private sector lending reaching Rs 1.5 trillion in FY26, boosting manufacturing growth, SME financing, and agricultural credit.
Pakistan’s Monetary Indicators Show Stability Amid Bearish Stock Market Trends
Pakistan’s Monetary Policy Committee maintains policy rate at 11% to support price stability, while key monetary aggregates show moderate adjustments. The Pakistan Stock Exchange experiences a bearish phase, reflecting market caution amid global and domestic uncertainties.