State Bank of Pakistan warns of rising trade deficit
ISLAMABAD: (UrduPoint/Pakistan Point News-June 16th, 2025) The State Bank of Pakistan (SBP) on Monday announced the monetary policy for the upcoming period, and decided to keep the benchmark interest rate unchanged at 11 percent.
T to the official statement issued by the central bank said that the decision was made during a meeting of the Monetary Policy Committee (MPC), which observed that inflation remained broadly in line with expectations, standing at 3.5 percent in May 2025. The committee noted a slight decline in inflationary pressures.
The SBP expressed optimism that inflation will stabilize during the next fiscal year, while economic growth is showing signs of gradual improvement and is forecast to rise further in the coming year.
However, the central bank flagged concerns over the country’s widening trade deficit and weakening financial inflows. It warned that certain proposed budgetary measures—particularly those that could lead to higher imports—might exacerbate the trade imbalance.
“In light of these developments, the Monetary Policy Committee deemed the current interest rate appropriate to maintain macroeconomic stability and ensure sustainable price control,” the SBP said.
The decision to hold the policy rate steady reflects a cautious approach amid mixed signals from the domestic and global economic landscape.
