Policy monitor

State Bank of Pakistan

Track State Bank of Pakistan decisions on interest rates, inflation, reserves, the rupee and banking policy.

The reporting trail

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Prime Minister Shehbaz Sharif stands at a wooden podium during the launch ceremony of the Ramazan relief package as a large screen displays the programme's title and his portrait.Pakistan / Politics & Governance

PM Shehbaz unveils Rs38bn Ramazan Package 2026 as cashless relief

Prime Minister Shehbaz Sharif launched a Rs38 billion Ramazan Package on 14 February, promising Rs13,000 in digital cash to each of more than 12 million families.

Two people in business suits shaking hands over a deskPakistan / Business & Finance

Pakistan clears two foreign firms to start operations, including oilfield services provider

The Board of Investment approved two foreign firms, including oilfield services provider INTAJ LLC, to begin operations in Pakistan.

A large stone building with arched windows and a central dome photographed in daylightPakistan / Business & Finance

Pakistan's central government debt rises to Rs78.5trn in December 2025

Pakistan's central government debt reached Rs78.5 trillion in December 2025, up 9.6 per cent year on year, with domestic debt at Rs55.4 trillion, State Bank data show.

The State Bank of Pakistan building in Lahore on a sunny dayPakistan / Business & Finance

S&P projects Pakistan's economy to grow 3.5pc in FY26, 4.4pc in FY27

S&P Global Market Intelligence projected Pakistan's real GDP growth at 3.5pc in FY26 and 4.4pc in FY27, endorsing the State Bank's macroeconomic outlook.

The State Bank of Pakistan building photographed on a sunny dayPakistan / Business & Finance

SBP holds policy rate at 10.5pc, cites improving growth and 7.4pc core inflation

SBP held the policy rate at 10.5pc on 26 January 2026, citing 5.6pc headline inflation, 7.4pc core, 3.7pc Q1 GDP growth and $16.1bn FX reserves.

The State Bank of Pakistan building, photographed from outside.Pakistan / Business & Finance

Pakistan current account slips into $244m deficit in December

State Bank of Pakistan data reported on 19 January 2026 show a $244 million current account deficit for December, ending a brief surplus as imports outpaced exports.

Wide view of the Marriner S. Eccles Federal Reserve Board Building in Washington, D.C., showing its travertine and marble facade on Constitution AvenueInternational — World / Business & Finance

Trump DOJ escalates pressure on Fed Chair Powell with criminal indictment threat

On 12 January 2026 the US Justice Department served subpoenas on the Federal Reserve over Chair Jerome Powell's June testimony, prompting markets to reprice Fed independence risk.

An indoor view of a Pakistan business chamber meeting in a formal hall, with an audience seated facing a podium under hanging ceiling lights.Pakistan / Business & Finance

PSX KSE-100 crosses 187,000 in record first week of 2026

Pakistan Stock Exchange KSE-100 surged past 187,000 in early January 2026 as liquidity and rate-cut hopes drove a record week, while foreign investors remained net sellers.

A fan of US dollar banknotes resting on a surface, with $100 and smaller denominations visiblePakistan / Business & Finance

Pakistan forex reserves rise to $16bn, highest since FY21

The State Bank reported reserves of $16.055bn for the week ending 2 January 2026, the highest level since FY21, on rising remittances and heavy central-bank dollar buying.

A low-angle view of a multi-storey bank tower against an overcast sky, with a vertical sign reading UBL on the upper facade.Pakistan / Business & Finance

UBL becomes Pakistan's most valuable listed firm, overtakes energy stocks

On 7 January 2026, United Bank Ltd crossed a Rs1.28tr ($4.6bn) market cap — the first listed bank to lead the PSX by capitalisation, ahead of energy names.

Exterior architectural view of the State Bank of Pakistan building in Karachi under daylight showing entrance and multiple storiesPakistan / Business & Finance

Pakistan CPI inflation slows to 5.6% in December as PBS releases mid-year data

Pakistan's headline inflation registered at 5.6% in December 2025, bringing average first-half inflation to 5.15% amid falling food and transport indices.

Stone facade of the Bulgarian National Bank in Sofia with Bulgarian and European Union flags above the entranceInternational — Region / International — Region

Bulgaria adopts the euro: what changed beyond the banknotes

Bulgaria became the euro area’s 21st member on 1 January 2026, changing its cash, central-bank role and place in European monetary policy.