The State Bank of Pakistan has announced that the interest rate will remain unchanged at 11% for the next two months. The decision was made during the latest Monetary Policy Committee (MPC) meeting held in Karachi. The bank aims to maintain economic balance and control inflation.
In its statement, the MPC said that inflation in May 2025 was 3.5%, which matched forecasts. This figure reflects a slight decline in inflation trends. The committee expects inflation to remain under control through the next fiscal year, given current conditions.
The central bank also noted signs of a slow but steady economic recovery. It predicted that growth would increase in the coming months. However, it expressed concern over a rising trade deficit and weak financial inflows, especially from remittances and exports.
The bank warned that certain upcoming budget measures might lead to higher imports. If that happens, it could worsen the trade deficit further. Still, the MPC believes the current interest rate is suitable to support macroeconomic stability while keeping prices under control.
Finally, the State Bank stressed that its decision was taken after reviewing all economic indicators. It promised to continue close monitoring of inflation trends, fiscal developments, and global economic pressures. The next policy update will depend on these evolving conditions.