KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has opted to maintain the key interest rate at 22% for the seventh consecutive meeting.
In a press release issued on Monday, the MPC stated, “At its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 22 percent.”
The Committee acknowledged the positive impact of macroeconomic stabilization measures on inflation and the external position, amidst a gradual economic recovery. However, it expressed concerns about persistently high inflation levels. Additionally, global commodity prices seem to have stabilized amid robust global economic growth.
Geopolitical developments and upcoming budgetary measures have introduced uncertainties regarding future economic conditions. Consequently, the Committee emphasized the need to maintain the current monetary policy stance to steer inflation towards the target range of 5–7 percent by September 2025.
Today’s decision precedes the conclusion of Pakistan’s $3 billion standby arrangement (SBA) with the International Monetary Fund (IMF) secured last year. The IMF Executive Board is scheduled to convene later today to finalize the disbursement of the remaining $1.1 billion tranche.
