Further adjustments to Pakistan’s policy rate will depend on the economic impact of recent floods and the outcome of the ongoing International Monetary Fund (IMF) review, State Bank of Pakistan (SBP) Governor Jameel Ahmad said in an interview with Bloomberg.
The central bank currently maintains the policy rate at 11%, a level decided in the last Monetary Policy Committee (MPC) meeting, citing near-term macroeconomic pressures from flood-related damages. The next MPC meeting is scheduled for October 27.
Ahmad said inflation may temporarily exceed the upper bound of the 5%-7% medium-term target range in early 2026, but on average will remain within the target in the current and next fiscal years.
The SBP governor confirmed that the central bank’s tight monetary stance has contributed to controlling inflation and that monetary-fiscal coordination is progressing.
Regarding the IMF program, Ahmad said the $7 billion loan program is advancing, with the central bank meeting its foreign reserve targets. Over the past three years, SBP purchased approximately $20 billion from the interbank market, reversing its previous net-seller position.
The strategy ensured that foreign reserves were not affected by Pakistan’s $500 million Eurobond payment in September 2025.
Ahmad also noted that Pakistan’s recently agreed 19% tariff rate on exports to the United States has generated increased inquiries from textile importers.
Separately, he confirmed that the government is developing a regulatory framework for cryptocurrency, which will include strict vetting and oversight for market participants. The framework aims to mitigate risks associated with virtual assets while allowing new entrants into the market.
