ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday suggested that Pakistan’s key interest rate could see further reductions this year, pointing to easing inflation trends.
While acknowledging that monetary policy decisions rest with the State Bank of Pakistan (SBP), Aurangzeb stated, “Given the current inflation—both average and core—I do think there is room to lower the policy rate, and I hope to see movement downward this calendar year.”
The SBP had held the rate steady at 11% in its July 30 meeting, defying expectations of a cut due to rising energy costs. The next policy announcement is scheduled for September 15.
The minister linked potential rate cuts to broader economic improvements, including:
✔ 60% surge in the stock market
✔ 38% rise in private-sector loans
✔ 250,000 new company registrations
✔ Rs. 1 trillion paid in debt servicing last year
He also highlighted reforms in energy tariffs, tax administration, and privatization, along with plans to issue Panda Bonds by year-end.
“Our economic stability is being recognized globally,” Aurangzeb said, expressing confidence in continued progress. As Pakistan celebrates Independence Day, he called for unity in building a stronger economy.