The Pakistani Rupee (PKR) maintained a steady position in the interbank market today, Saturday, December 20, 2025, reflecting a period of relative currency stability.
This follows a surprise 50 basis point cut in the benchmark policy rate by the State Bank of Pakistan (SBP) earlier this week, bringing the interest rate down to 10.5%.
Financial analysts suggest that this stability is bolstered by the recent $1.2 billion disbursement from the IMF, which has strengthened the country’s foreign exchange reserves and eased immediate economic pressures.
The policy rate was reduced to 10.5% as of December 16, 2025, to stimulate investment.
Consumer price inflation eased to approximately 6.1% in November, though officials remain cautious about price growth targets.
The Pakistan Stock Exchange (PSX) recently hit a record high of 171,960 points, driven by news of a current account surplus.
Bullish sentiment returns at PSX with over 1,600-point rally
Total liquid foreign reserves held by the country stood at approximately $21.1 billion as of mid-December.
“While the immediate risk of an economic free fall has eased due to IMF support and record-high stock performance, the country remains on a narrow path toward long-term stabilization,” noted analysts following the IMF’s latest review.
