SBP keeps policy rate unchanged at 11.5pc

KARACHI-- The State Bank of Pakistan (SBP) on Monday announced its monetary policy for the next two months, deciding to keep the benchmark policy rate unchanged at 11.5 per cent.

Announcing the decision, SBP Governor Jameel Ahmad said the Monetary Policy Committee (MPC) had unanimously decided to maintain the policy rate at its current level of 11.5 per cent.

He said inflation had continued its downward trend over the past few years, with average inflation recorded at 5.5 per cent between July and February. He added that Pakistan's current account deficit stood at $139 million in fiscal year 2026, while it is projected to remain between zero and one per cent of GDP in fiscal year 2027.

The SBP governor said workers' remittances are expected to reach $20.20 billion by December 2026, and this projection remains unchanged despite global economic uncertainties. He noted that exports and overseas Pakistanis' remittances continue to be the country's principal sources of external inflows, adding that government measures are expected to boost exports during fiscal year 2027.

Jameel Ahmad further said the Roshan Digital Account initiative has attracted approximately $300 million over the past four months.

He added that imports are expected to increase during the current fiscal year, while external inflows are also likely to remain strong. Despite meeting all external payment obligations, Pakistan has continued to strengthen its foreign exchange reserves. He further noted that the country is scheduled to repay $21.5 billion in external debt during fiscal year 2027.