KARACHI: The State Bank of Pakistan (SBP) on Monday kept the policy rate unchanged at 10.5%.
The decision was taken during a meeting of the Monetary Policy Committee (MPC) held earlier in the day. SBP Governor Jameel Ahmad announced the decision at a press conference after the meeting.
The central bank also decided to reduce the Cash Reserve Requirement (CRR) for banks from 6% to 5%.
According to the MPC, inflation stood at 5.6% in December, while core inflation remained at 7.4%. The committee said economic growth was better than expected, with GDP growth projected at 4.75% in fiscal year 2026.
The MPC noted that higher imports led to an increase in the trade deficit, while the current account deficit remained under control.
Foreign exchange reserves were reported at $16.1 billion, with expectations that they would exceed $18 billion by June.
The committee said FBR revenue remained below target, recording a shortfall of Rs329 billion.
Private sector credit increased by Rs578 billion during the period.
The current account deficit stood at $244 million in December 2025, while the overall deficit for the first half of the fiscal year reached $1.2 billion. The SBP said the deficit was partly offset by strong workers’ remittances and higher ICT exports.
