The State Bank of Pakistan hiked its key policy interest rate by 150 basis points to 13.75% during its May 23rd meeting, to preserve price and foreign exchange stability amid a sharp devaluation of the rupee. The monetary policy committee reiterated that external pressures remain elevated, and the inflation outlook has deteriorated due to both home-grown and international factors. However, the economy has rebounded much more strongly than anticipated, growing by 5.7 percent last year and accelerating to 5.97 percent this year, as per provisional estimates. Further, it assumes continued engagement with the IMF, as well as reversal of fuel and electricity subsidies together with normalization of the petroleum development levy (PDL) and GST taxes on fuel during FY23. Under these assumptions, headline inflation is likely to increase temporarily and may remain elevated throughout the next fiscal year, however it is expected to fall to the 5-7 percent target range by the end of FY24. source: State Bank of Pakistan
Interest Rate in Pakistan averaged 11 percent from 1992 until 2022, reaching an all time high of 19.50 percent in October of 1996 and a record low of 5.75 percent in May of 2016. This page provides - Pakistan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Pakistan Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2022.
Interest Rate in Pakistan is expected to be 15.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Pakistan Interest Rate is projected to trend around 12.00 percent in 2023 and 11.25 percent in 2024, according to our econometric models.