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State Bank Keeps Interest Rate Unchanged at 11% for Next Two Months

Governor says remittances are projected to exceed $38 billion this fiscal year compared to $30 billion of previous year.

By Faiz Paracha

KARACHI: The State Bank of Pakistan (SBP) has announced that the policy interest rate will remain unchanged at 11% for the next two months.

Addressing a press conference, SBP Governor Jameel Ahmad stated that the decision was made after reviewing all key economic indicators.

He noted that the inflation rate in April hit its lowest level in recent months, although there was a slight increase in May and June due to base effects and rising energy prices. Currently, the inflation rate stands at 7.2%, and it is expected to rise modestly in the coming period.

The governor also highlighted positive developments in the external sector. Exports have increased by 4%, and worker remittances have grown by $8 billion, helping the current account remain in surplus.

Jameel Ahmad emphasized that increasing exports is crucial for maintaining control over the current account. He added that remittances are projected to exceed $38 billion this fiscal year, compared to $30 billion in the previous year.

Faiz Paracha

Faiz Paracha, an esteemed broadcast journalist with over two decades of experience, excels in reporting and editorial positions. His expertise lies in the economy and energy sectors, where he has delivered thorough coverage and valuable insights.

Currently serving as the Head of Reporting at News Diplomacy, Faiz manages coverage related to diplomatic missions, international development organizations, the United Nations, and foreign affairs. His diverse interests encompass environmental and climatic issues, alongside his profound knowledge of business, economy, and energy.

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