The State Bank of Pakistan (SBP) announced on Monday that it will maintain the key interest rate at 11 per cent. This decision comes as policymakers consider the effects of recent flooding and rising food prices on inflation.
In a statement shared via social media platform X, the SBP noted that the Monetary Policy Committee (MPC) made this decision during its meeting on October 27, 2025.
The Monetary Policy Committee decided to keep the policy rate unchanged at 11 percent in its meeting held on October 27, 2025. Please visit: https://t.co/8TgI0anHiP
— SBP (@StateBank_Pak) October 27, 2025
Read also: SBP records Rs 780 billion reduction in federal debt during August
The State Bank of Pakistan recorded a significant reduction of Rs 780 billion in federal debt during August 2025, according to the latest SBP report.
The overall federal debt now stands at Rs 77,458 billion, down from Rs 78,238 billion in July.
The SBP report highlighted that the bulk of the decrease came from the government’s domestic debt, which fell by Rs 915 billion. Internal borrowing dropped from Rs 54,988 billion in July to Rs54,733 billion in August.
The decline was largely attributed to a reduction in the volume of long-term internal debt as well as a decrease in loans received through bonds, including Sukuk.
While internal debt saw relief, Pakistan’s external debt rose by Rs135 billion during the same period. The external obligations increased from Rs 23,250 billion in July to Rs 23,385 billion in August, reflecting continued reliance on foreign loans.
The SBP also reported a drop in investments under the Naya Pakistan Certificate, which fell from Rs71 billion to Rs66 billion. Similarly, loans raised through various bonds registered a decline, further easing the burden of domestic liabilities.
