Save Our Pak
The State Bank of Pakistan has announced its new monetary policy for the next two months.
According to the new decision, the interest rate will stay at 11%. The Bank said this decision was made after reviewing the current inflation rate and the effects of recent floods.
In September 2025, the monthly inflation rate was 5.6%, while the current account showed a $110 million surplus.
It is important to note that this is the fourth time in a row that the Monetary Policy Committee has kept the interest rate unchanged. Earlier this year, on May 5, the Committee reduced the interest rate by 1%, bringing it down to 11%.
The President of FPCCI, Atif Ikram Sheikh, said that keeping the policy rate at 11% “doesn’t make sense.” He explained that, according to inflation levels, the rate should be around 6% to 7% only.
He also added that lowering the interest rate could have reduced the government’s debt by 3,500 billion rupees. Pakistan’s interest rate is higher than most countries in the region. He said that if the rate were in single digits, it would help improve business activity and reduce production costs.
Atif Ikram further said that lower production costs would help bring down inflation. Keeping high interest rates affects money circulation and harms the business environment. According to him, keeping the rate high will create more problems for trade and industry.
Reported by Save Our Pak
