KARACHI: The State Bank of Pakistan is expected to unveil its first monetary policy for the fiscal year 2025-26 today, with economists anticipating a potential interest rate cut, ARY News reported.
Experts believe the Monetary Policy Committee (MPC) might cut the interest rate by 50 to 100 basis points, due to falling inflation and improving economic conditions.
Right now, the interest rate is 11 percent, down from 22 percent last year.
Inflation was 3.2 percent in June 2025, and the average for the fiscal year 2024–25 was 4.49 percent, which supports the case for lowering the rate.
However, the IMF has advised Pakistan to keep monetary policy tight, which may limit how much the rate is reduced.
The decision is important as the State Bank tries to balance controlling inflation with supporting economic growth, while staying aligned with IMF guidelines.
Also Read: SBP simplifies account opening for individuals and businesses
In other news, the State Bank of Pakistan (SBP) earlier introduced a consolidated customer onboarding framework aimed at simplifying and standardizing the account opening process for individuals and businesses, while also promoting digital payment adoption across the country.
According to a statement, SBP advised regulated entities (REs), including banks and financial institutions to ensure that new account opening is completed within two working days for the general public.
Customers should also be able to track the status of their account applications, enhancing transparency and customer convenience.
In addition, SBP has directed all REs to equip merchants—both new and existing, with at least one digital payment acceptance solution, such as Raast QR codes, Point of Sale (POS) terminals, or e-commerce/Raast checkout systems to enable seamless in-store and online transactions.
The new framework also aims to rationalize documentary requirements and enable digital onboarding through user-friendly platforms, making it easier for customers to open and operate various types of bank accounts remotely.
To promote low-cost digital inclusion for small businesses, SBP has instructed REs to categorize merchants as micro, small, or registered, facilitating targeted onboarding and support.
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