ISLAMABAD: The State Bank of Pakistan (SBP) will present its initial monetary policy for this new fiscal year today. The economic experts expect that the central bank will decrease the current interest rate to below 10 percent.
The State Bank Monetary Policy Committee will convene at the main office of the State Bank located in Karachi to assess economic data and inflation rates before establishing the new basic interest rate. The State Bank Governor Jameel Ahmed will deliver the official announcement during a press briefing.
The State Bank of Pakistan decreased the main interest rate by 0.5 percent during its final monetary policy of 2025 which resulted in the rate falling to 10.5 percent. Experts believe that current treasury bill trends indicate that benchmark interest rates will decrease further. The interest rate that banks charge for government loans has reached a single-digit rate for the first time in four years which indicates that the State Bank will probably implement a similar interest rate decrease.
Recent surveys show that treasury bill interest rates have decreased which creates higher expectations that the central bank will also lower its key interest rate. Economists predict that the State Bank will decrease the interest rate between 0.5 percent and 1 percent because of three factors: stable foreign exchange reserves, controlled inflation, and increased remittance flows.
The reduction will create substantial advantages for businesses and consumers who need to borrow money which will help the country establish its recovery from economic downturns.
New currency notes ready, State Bank awaits government approval
Earlier, preparations to introduce new currency notes in Pakistan have been completed, but the State Bank of Pakistan is still waiting for final approval from the federal government.
According to a private TV channel, the Security Printing Corporation said the new currency will include modern and effective security features. However, the ultimate designs of the bills are still not formally accepted.
Authorities indicated that after the green light is given, it will take a minimum of two months to begin printing the new bills.
Senior Manager Printing at the Security Printing Corporation, Aamir Shams, said that consultations between the State Bank and the corporation regarding the printing of new currency have already taken place.
He said a decision is still under consideration on whether the new designs will be introduced in phases or all denominations will be launched at the same time. He added that the State Bank is likely to announce an official timeline for printing the new currency later this year.
Sources said that a formal printing order for the new currency notes will only be issued after approval from the federal cabinet. The State Bank has already shortlisted the new designs and sent them to the government.
According to sources, if the cabinet gives its approval, the new design currency notes could be introduced in the final months of 2026.
