Islamabad, July 30, 2025: The State Bank of Pakistan (SBP) has officially declared its first SBP Monetary Policy for the fiscal year 2025-26. The decision was announced by SBP Governor Jameel Ahmed following the Monetary Policy Committee (MPC) meeting.
The Monetary Policy Committee (MPC) evaluate the current economic scenario, inflationary movements, and trends in the financial markets before reaching a verdict. After thorough deliberation, the committee decided to maintain the benchmark interest rate at 11%.
The SBP chief stated that although inflation hit a low point in April, it slightly increased in May and June, mainly due to higher energy prices and the base effect. He noted that inflation could rise in the coming months if energy-related costs continue to rise.
On the external side, he noted that Pakistan’s exports have seen a 4% rise, stressing that boosting exports is crucial for maintaining balance in the current account.
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He further shared that worker remittances have gone up by $8 billion, which played a key role in keeping the current account in surplus.
While discussing overall economic stability, he mentioned that Pakistan has met all its debt payments on time and managed to grow its foreign exchange reserves by $5 billion, despite making $26 billion in external payments.
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The SBP had earlier shared its complete monetary policy schedule for the ongoing fiscal year, which includes eight announcements. Today’s update will be followed by future reviews scheduled for September 15, October 27, and December 15, 2025. The remaining four decisions will be made on January 26, March 9, April 27, and June 15 in 2026.
Interest rate policy remains a powerful tool for the central bank to manage inflation, regulate money supply, and influence investor confidence. The latest SBP Monetary Policy reflects a careful assessment of the consumer price index (CPI), rupee stability, and the broader outlook for economic growth.
