AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The State Bank of Pakistan (SBP) announced it would keep the policy rate unchanged at 11%, highlighting concerns over rising imports and geopolitical tensions in the Middle East. These factors were identified as significant risks contributing to the uncertainty in the commodity markets and inflationary pressures.
The Monetary Policy Committee (MPC) emphasized that maintaining the current rate is crucial for preserving macroeconomic and price stability. The decision comes as certain fiscal year 2026 budget proposals are expected to potentially widen the trade deficit.
The central bank noted a slight decline in core inflation based on May 2025 data. However, it cautioned that any increase in food and energy prices could lead to a renewed rise in inflation rates.
Despite these challenges, the SBP expressed optimism, citing strong remittances and anticipated inflows that are expected to boost foreign reserves to approximately $14 billion by June 2025. The SBP Governor also projected a continued current account surplus for the fiscal year 2025.