Karachi: The State Bank of Pakistan (SBP) has announced its new monetary policy, deciding to keep the interest rate unchanged at 11%.
The Monetary Policy Committee (MPC) held its second meeting of the year today, chaired by SBP Governor Jameel Ahmad. In the meeting, the committee decided to maintain the policy rate at its current level of 11%.
The last MPC meeting was held on July 30, during which the committee had also decided to keep the interest rate unchanged at 11%, due to inflation concerns stemming primarily from increases in energy prices, particularly gas tariffs.
Since the previous MPC meeting, several key economic developments have occurred. The Pakistani Rupee has appreciated by 0.5%, indicating a slight strengthening of the local currency. Additionally, petrol prices have declined by 3%, which could contribute to easing inflationary pressures and reducing transportation costs.
On the international front, oil prices have dropped nearly 10% since the last MPC meeting and are currently hovering around $63 per barrel.
According to the Pakistan Bureau of Statistics, headline inflation in August 2025 stood at 3% year-on-year, down from 4.1% recorded in July 2025.
Additionally, the country's current account recorded a deficit of $254 million in July 2025, compared to a surplus of $328 million in June 2025. However, this is still an improvement from the $350 million deficit recorded in July 2024.
SBP’s foreign exchange reserves increased by $34 million on a weekly basis, reaching $14.34 billion as of September 5, 2025.
Overall, Pakistan’s total foreign exchange reserves stood at $19.68 billion, with commercial banks holding net reserves of $5.34 billion.
