The State Bank of Pakistan (SBP) has decided to maintain the policy interest rate at 11% for the next two months, as part of its latest monetary policy announcement.

Governor Jameel Ahmed shared the update during a press conference, stating that the decision was made after carefully reviewing the country’s key economic indicators. “We have seen improvements in several economic metrics, and our aim is to support the recovery while keeping inflation under control,” he said.

According to Governor Ahmed, the inflation rate currently stands at 7.2%, with a noticeable upward trend beginning in April and continuing through May and June. Despite these inflationary pressures, the economy has shown resilience.

Exports and Remittances See Growth

Governor Ahmed noted a 4% year-on-year increase in exports, a positive sign for the country’s external trade performance. Remittances also saw a significant boost, reaching $38 billion, compared to $30 billion in the previous year. This sharp rise reflects growing confidence from overseas Pakistanis and improved inflows through formal channels.

He added that the central bank is focusing closely on strengthening external accounts and ensuring financial stability.

IMF Predicts Lower-Than-Targeted GDP Growth

Despite progress in several areas, Pakistan’s GDP growth is expected to remain below target, according to the International Monetary Fund (IMF). Nonetheless, the SBP remains committed to managing inflation, encouraging sustainable growth, and safeguarding the country’s macroeconomic stability.

The decision to hold the interest rate steady reflects a balanced approach aimed at curbing inflation while supporting ongoing recovery efforts in the post-crisis economic landscape.