The State Bank of Pakistan raised the SBP policy rate by 100 basis points to 11.50%, citing emerging economic challenges and global uncertainty.
The central bank said Consumer Price Index inflation stood at 7.3% in March 2026, showing persistent price pressure in the economy. The SBP also reported a current account surplus of USD 1.07 billion for March 2026.
The cumulative current account surplus for the first nine months of the fiscal year reached USD 174 million, according to the monetary policy statement.
Economic experts linked the rate increase to global uncertainty and Middle East tensions, which have pushed oil prices higher. Analysts said higher fuel costs could raise transport and essential commodity prices, adding to consumer pressure.
The SBP said the adjustment aims to maintain macroeconomic stability and keep inflation expectations under control.
At its previous meeting, the Monetary Policy Committee kept the rate unchanged at 10.5%, citing risks from the Middle East conflict and higher fuel, logistics and insurance costs. Pakistan’s inflation rose from 5.8% in January to 7% in February.
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The SBP’s foreign exchange reserves stood at USD 16.3 billion as of February 27, while large-scale manufacturing grew 0.4% in December 2025.
