Pakistan’s Financial System in 2025: Stability with Cautious Optimism
Pakistan’s financial landscape showed notable resilience throughout 2025, managing to stay stable despite a challenging global environment. According to the central bank’s latest financial stability review, a combination of easing inflation, improving macroeconomic indicators, and strong banking sector fundamentals helped the system maintain its footing. One of the most significant highlights was the overall expansion […]
SBP Raises Policy Rate to 11.50% and Adjusts Interest Rate Corridor
The State Bank of Pakistan (SBP) has announced a significant monetary policy update, increasing its benchmark policy rate by 100 basis points to 11.50%, effective April 28, 2026. Alongside this decision, the central bank has also revised its interest rate corridor, setting the overnight reverse repo rate at 12.50% and the overnight repo rate at […]
Pakistan’s Forex Reserves Show Modest Growth, Signal Stability
Pakistan’s external financial position recorded a slight improvement in April 2026, as the country’s foreign exchange reserves inched upward. Fresh data released by the State Bank of Pakistan shows that total liquid reserves reached $20.63 billion for the week ending April 17, indicating a stable—though not rapidly improving—economic outlook. A closer look reveals that reserves […]
Pakistan’s Economy Shows Faster-Than-Expected Recovery — But Risks Still Linger
Pakistan’s economy appears to be stabilizing more quickly than many anticipated, with key indicators pointing toward a gradual but meaningful recovery. Recent remarks from the central bank leadership highlight improvements in inflation, foreign reserves, and economic growth — all signs that the country’s tough policy measures are beginning to pay off. One of the most […]
Pakistan Moves to Bring Crypto Businesses Into the Banking System
Pakistan has taken a significant step toward regulating its digital asset space by allowing licensed virtual asset service providers (VASPs) to access formal banking channels. The decision by the State Bank of Pakistan marks a clear departure from its earlier stance in 2018, when financial institutions were effectively barred from dealing with crypto-related businesses. This […]