Pakistan central bank surprises by holding key rate steady at 11%
In a Reuters poll this week, all 15 analysts said they expected the SBP to ease, with nine forecasting a 50-basis-points cut, four predicting a deeper 100-basis-points reduction and two projecting a smaller 25-basis-points cut.
The decision came as Pakistan pushes reforms under a $7 billion IMF program and a contractionary budget to curb deficits.
In its Economic Outlook Update on Tuesday, the IMF cut its growth forecast for the fiscal year ending June 2026 to 3.6%, well below the government's 4.2% target.
'The Monetary Policy Committee (MPC) ... noted that the inflation outlook has somewhat worsened in the wake of higher than anticipated adjustment in energy prices, especially gas tariffs,' the State Bank of Pakistan (SBP) said in a statement.
The panel also noted that the trade deficit was expected to widen further in the fiscal year ending June 2026 amid a pickup in economic activity and a slowdown in global trade.
'Given this macroeconomic outlook and the emerging risks, the MPC considered today's decision as necessary to ensure price stability,' it said.
The SBP had held rates in June after a 100-basis-points cut in May that resumed easing following a March pause. Since June 2024, it has lowered its policy rate by 1,100 basis points from a record 22% as price pressures receded.
Headline inflation slowed to 3.2 % in June and is projected at 3.5%–4.5% in July, within the SBP's 5.5%–7.5% target range for the fiscal year ending June 2026.
The government says the economy has stabilized, but analysts warn growth remains fragile and global commodity price swings could still add pressure on prices and external balances.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
30 minutes ago
- Arab News
UAE's AD Ports Group opens office in Islamabad to facilitate maritime, logistics partnerships
ISLAMABAD: The Abu Dhabi (AD) Ports Group, a leading Emirati maritime and logistics provider, on Tuesday announced the opening of its first representative office in Pakistan's capital of Islamabad, aiming to facilitate partnerships in maritime, logistics and other key domains. The announcement comes months after AD Ports signed four memorandums of understanding (MoUs) with Pakistan in November last year to explore opportunities to upgrade the country's maritime, rail, airport, customs and logistics infrastructure. The move coincides with Pakistan's efforts to attract international investment, particularly from Gulf countries, with a focus on strategic sectors such as ports and shipping, aviation and logistics to drive sustainable economic growth. 'The new office will serve as a critical platform for deepening engagement with government stakeholders and advancing priority infrastructure and trade initiatives,' the AD Ports Group said in a statement. 'As a client-facing and administrative hub, the Islamabad office will also support ongoing operations and facilitate strategic partnerships in the ports, maritime, logistics, and industrial development sectors.' The development reflects the depth of the bilateral relationship and shared vision for long-term economic cooperation between the two countries, according to the Emirati port operator. It follows a series of high-impact investments by AD Ports Group in Pakistan, including $295 million committed toward the development and enhancement of container, bulk, and general cargo terminals at Karachi Port's East Wharf, which are central to the Group's strategy to support the transformation of Pakistan into a regional trade and logistics hub. On the occasion, AD Ports CEO Capt. Mohamed Juma Al-Shamisi said the opening of the Islamabad office marks a significant milestone in the Group's global expansion strategy. 'This move will enable closer collaboration with government entities and strategic partners, positioning AD Ports Group as a key contributor to Pakistan's economic transformation,' he said. 'Our growing footprint, underpinned by significant investments in critical port infrastructure, aligns with our wise leadership vision for trade facilitation, industrial diversification and sustainable development.' The UAE is Pakistan's third-largest trading partner after China and the United States, and the second biggest source of foreign remittances to Pakistan after Saudi Arabia. Pakistan holds a strategic geographic position as a maritime gateway to Central Asia, making it a crucial element in AD Ports Group's vision to establish an integrated trade corridor stretching from China to Europe, according to maritime and logistics provider. AD Ports Group entered Pakistan in 2022 with a landmark 50-year concession to develop and operate container berths 6–10 at Karachi Port's East Wharf in partnership with Kaheel Terminals. This was followed by a second 50-year agreement in 2023 to manage berths 11–17 for general and bulk cargo. In July 2024, the group also signed an agreement to invest $250 million over the next decade in Pakistan with plans to develop a state-of-the-art port facility in the coastal city of Karachi.
ArabGT
2 hours ago
- ArabGT
2025 BYD Sealion 7 Review
The 2025 BYD Sealion 7 marks a bold move by the Chinese automotive giant BYD, introducing a stylish, practical, and performance-oriented mid-size electric SUV to international markets. Unveiled as part of BYD's innovative Ocean Series, the Sealion 7 isn't just another electric crossover; it's a serious contender designed to stand out against European, Korean, and American rivals. Launched initially in China under the Sealion 07 name, this SUV blends compelling performance figures with advanced technology and appealing design, promising significant value for buyers worldwide. Exterior Design Inspired directly by the dynamic beauty of ocean waves, the 2025 BYD Sealion 7 showcases a distinctive, modern design characterized by fluid lines and an assertive presence. Its front-end styling, with a distinctively aggressive X-shaped fascia and minimalist LED headlights, underscores the SUV's futuristic look. Enhancing aerodynamics, flush-mounted door handles integrate seamlessly into the bodywork, contributing to its sleek profile. Two trim levels cater to different tastes: the Premium variant rides on sophisticated 19-inch wheels, whereas the higher-end Performance version is sportier, equipped with 20-inch wheels wrapped in performance-oriented Michelin EV tires. The available color palette, including the mesmerizing Atlantis Gray, perfectly complements its striking visual appeal. 2025 BYD Sealion 7 Interior Entering the cabin of the BYD Sealion 7, occupants are greeted by a spacious, luxurious interior infused with practical technology. The ocean-inspired theme continues inside with premium materials like soft-touch surfaces and, in the Performance trim, high-quality German Nappa leather seats. The interior is designed to maximize comfort, offering ample legroom and clever storage solutions, including a wireless smartphone charger and strategically placed storage compartments. Notably, BYD balances digital technology with physical usability; the large, rotating 15.6-inch touchscreen is accompanied by physical controls for essential functions, such as climate settings. Additionally, a large panoramic glass roof equipped with an electric shade enhances comfort, especially in warmer climates. Powertrain : Underpinning the 2025 BYD Sealion 7 is BYD's reputable Blade battery technology, offering both safety and efficiency. The SUV houses an 82.5 kWh battery pack, available in two distinct configurations: Premium (Rear-Wheel Drive): Powered by a single electric motor, this variant produces 308 horsepower and 380 Nm torque. It achieves 0-100 km/h in approximately 6.7 seconds and provides a practical driving range of up to 482 km per charge. Performance (All-Wheel Drive): With dual electric motors, this powerful variant delivers a combined 523 horsepower and 690 Nm torque, allowing acceleration from 0-100 km/h in just 4.5 seconds. Its top speed is electronically limited to 215 km/h, with a slightly reduced but still competitive real-world range of around 456 km per charge. The Sealion 7 excels in delivering impressive real-world driving ranges close to advertised figures, even under demanding driving conditions, offering drivers reassuring confidence in its capabilities. 2025 BYD Sealion 7 Price In the UAE and Saudi Arabia, the BYD Sealion 7 is exclusively distributed by Al-Futtaim Automotive, known for its reliable after-sales service and dealership network. Pricing for this impressive electric SUV is competitive, starting from AED 172,900 (USD 47,080 / SAR 176,500) for the Premium trim. Buyers interested in the fully loaded Performance variant can expect to pay AED 192,900 (USD 52,520 / SAR 196,970), positioning the Sealio Gallery:
Arab News
2 hours ago
- Arab News
Pakistan redefines microenterprises to include more firms, drafts policy for women entrepreneurs
ISLAMABAD: Pakistan has lowered the threshold for defining microenterprises to include companies with annual revenues of up to Rs30 million ($106,000) under the national Small and Medium Enterprise (SME) development framework, and has finalized a draft Women's Entrepreneurship Policy, the Prime Minister's Office said on Tuesday. The measures are part of a broader push by the government to revive the economy by expanding private-sector innovation and participation following years of economic distress. Pakistan's financial outlook began improving after securing several International Monetary Fund (IMF) loans and introducing structural reforms that stabilized macroeconomic indicators. Prime Minister Shehbaz Sharif chaired a review meeting of the Small and Medium Enterprises Development Authority's (SMEDA) steering committee to evaluate the performance of the SME sector. Officials briefed him on reforms aimed at enhancing the authority's institutional capacity and outreach. 'Companies with annual business up to Rs30 million have been classified as microenterprises and brought under SMEDA's scope on the instructions of the Prime Minister,' the statement said. 'The draft of the Women Entrepreneurship Policy has also been prepared and will soon be submitted to the federal cabinet for approval.' Other initiatives discussed during the meeting included the upcoming launch of a digital portal for women entrepreneurs and outsourcing of work related to SMEDA's credit scoring model, SME subcontracting legal framework and export enhancement strategy. SMEDA is also conducting a survey of 20 economic sectors in collaboration with the Pakistan Bureau of Statistics, the statement said. "Small and medium-sized enterprises hold a vital place in the country's development and economy," the prime minister said while addressing the gathering. "The government is working on a priority basis to promote small and medium-sized businesses," he added.
