Further changes to Pakistan’s interest rate policy will depend on the impact of recent floods and progress in the IMF review. State Bank of Pakistan (SBP) Governor Jameel Ahmad made this statement in an interview with Bloomberg. He said the central bank would continue watching inflation and external sector risks before adjusting rates.
The policy rate is currently at 11%, held steady at the last Monetary Policy Committee (MPC) meeting. The SBP cited post-flood macroeconomic pressure as a reason for caution. The next MPC meeting is scheduled for October 27. Governor Ahmad said inflation could cross the 7% mark in early 2026 but should average within the 5%–7% target range in the current and next fiscal years.
Read more: SBP holds policy rate at 11% amid inflation, flood concerns
He added that Pakistan’s tight monetary policy has helped control inflation. Coordination between monetary and fiscal authorities is improving, supporting overall macroeconomic stability. He also noted that the IMF’s $7 billion loan program is progressing well. The SBP has met its foreign reserves targets and reversed its previous net-seller position by purchasing $20 billion from the interbank market over the past three years.
This strategy helped preserve reserves despite Pakistan’s $500 million Eurobond repayment in September 2025. Ahmad also shared positive trade developments. He said the newly agreed 19% tariff rate on Pakistani exports to the U.S. has drawn increased interest from textile importers. This could support export growth going forward.
Read more: September inflation at 3.5-4.5% despite floods: Finance Ministry
Separately, Ahmad confirmed that Pakistan is preparing a strict regulatory framework for cryptocurrency. The aim is to reduce risks while allowing secure participation in virtual asset markets. The framework will focus on vetting market participants and improving oversight. This marks a cautious but open approach to digital finance in Pakistan’s evolving regulatory landscape.