By our correspondent
KARACHI: The State Bank of Pakistan (SBP) has left its benchmark interest rate unchanged at 11.50%, citing an improving inflation outlook, stable economic indicators and continued uncertainty stemming from tensions in the Middle East.
The decision was taken at a meeting of the Monetary Policy Committee chaired by SBP Governor Jameel Ahmad. He said inflation had continued to follow a downward trend over the past year, with average inflation standing at 5.5% between July and February.
Speaking after the meeting, Ahmed said Pakistan recorded a current account deficit of $139 million in the 2025–26 fiscal year and projected that the deficit would remain between 0% and 1% of GDP during the current financial year. He said the central bank still expected the country’s foreign exchange reserves to reach $20.2 billion by December 2026 despite global economic uncertainty.
Ahmad said exports and workers’ remittances remained the country’s main sources of foreign exchange, adding that government measures were expected to support stronger export growth during the 2026–27 fiscal year. Imports were also expected to rise, while external inflows were projected to remain healthy.
The governor noted that Roshan Digital Accounts had attracted around $300 million over the past four months and said the central bank had continued to build its foreign exchange reserves despite meeting external payment obligations.
The governor said Pakistan faced $21.5 billion in external debt repayments during the 2026–27 fiscal year, including $10 billion in rolled-over loans, $7 billion in principal repayments and $3.5 billion in interest payments. He added that improved debt management was expected to reduce repayments by around $4 billion.
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