Rawalpindi, June 16, 2025: The State Bank of Pakistan (SBP) today announced its decision to keep the policy interest rate unchanged at 11.0%. This economic review announcement came as the central bank shared its latest assessment of Pakistan’s economic situation.
The SBP noted that inflation saw a 3.5% increase in May. However, it predicts inflation will stabilize within its target range of 5% to 7% during the next fiscal year (FY26). The central bank also expects the recent budget changes to have a limited impact on price increases.
Read More: Punjab Budget 2025: 10% Salary Increase, No New Taxes Announced
Looking at economic growth, the SBP reported a gradual increase in activity. The real Gross Domestic Product (GDP) growth for the current fiscal year (FY25) is estimated at 2.7%. This Economic Review can cause stronger growth in the second half of this year, with GDP reaching 3.9%. For the upcoming fiscal year, the SBP targets 4.2% economic growth, expecting the industry and services sectors to be key drivers
