Islamabad (Commerce Desk) The State Bank of Pakistan (State Bank of Pakistan) has announced its monetary policy decision, keeping the policy rate unchanged at 11.5 percent.
According to the central bank, inflation increased during April and May, with core inflation rising to 8.7 percent in May.
The statement said that pressure on external accounts remains at a moderate level. It further noted that GDP growth stood at 3.7 percent in 2026, while foreign exchange reserves increased to 17.2 billion dollars.
The State Bank added that the ongoing conflict in the Middle East has affected the overall economic situation. In April, the current account moved into a deficit of 0.3 billion dollars; however, the government has attempted to control the fiscal deficit through cautious spending.
According to the central bank, private sector borrowing recorded an increase of approximately 13 percent.