The State Bank of Pakistan (SBP) has reduced the policy interest rate by 1%, bringing it down from 12% to 11%.
According to the SBP, the inflation outlook has improved further compared to earlier projections. The Monetary Policy Committee (MPC) emphasized the importance of maintaining a cautious monetary policy stance.
The central bank also expressed optimism that foreign exchange reserves are expected to rise to $14 billion by June 2025.
Additionally, the committee appreciated the recent legislation aimed at enhancing the collection of agricultural income tax.
