Pakistan Faces Competitiveness Crisis as Business Costs Remain 34% Higher Than Regional Economies
Pakistan Business Forum warns that high taxes, expensive energy and currency instability have pushed the cost of doing business 34% above regional peers, threatening exports and industrial survival.
Pakistan Central Bank Expected to Hold Rates at 11% Amid Inflation and External Pressures
Pakistan’s State Bank is expected to retain interest rates at 11% as the IMF warns of persistent inflation risks. Analysts now push first rate cuts to late FY26 or FY27 amid rupee and external pressures.
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.
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.
Pakistan’s Foreign Exchange Reserves Hold Steady at $19.80 Billion: SBP
The State Bank of Pakistan (SBP) reports that the country’s total foreign exchange reserves remain steady at $19.80 billion for the week ending September 26, 2025. Slight fluctuations between central and commercial bank holdings indicate continued stability in Pakistan’s external financial position, with an expected boost from upcoming IMF disbursements.
SBP’s April Foreign Exchange Intervention Totals $473 Million, Bringing FY25 Cumulative to $6.66 Billion
The State Bank of Pakistan made a net FX purchase of $473 million in April 2025, bringing FY25’s total interventions to $6.66 billion. Since data publication began in June 2024, SBP’s cumulative FX operations now stand at $7.23 billion, reflecting its ongoing role in stabilizing the currency market.