The State Bank of Pakistan (SBP) has decided to maintain the policy rate at 11 percent, disappointing investors and the business community who had anticipated a reduction. SBP Governor Jameel Ahmad announced the first monetary policy of fiscal year 2025-26 at a press conference in Karachi. The MPC reviewed the overall financial and fiscal situation, major economic indicators, data of different sectors and major developments taken place since the announcement of the previous monetary policy. 

The monetary policy committee, in its previous meeting on 16 June 2025, had taken a cautious stance and kept the policy rate unchanged at 11 percent in view of inflation expectations, potential external sector risks and multiple risks emanating from regional geopolitical conflicts. On the other hand, the business and Industrial community of Karachi, emphasising the significance of lower policy rate in boosting economic activities in the country, reiterated their demand to slash the policy rate down into single digit viz-a-viz inflation. 

Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry (KCCI), North Karachi Association of Trade and Industry (NKATI) and several other chambers and associations of the business community, in separate statements, demanded significant reduction in the policy rate to foster industrialization, boost exports, promote competitiveness and uplift the national economy. 

Credit: Independent News Pakistan (INP)