Latest news with #SBP
Express Tribune
6 hours ago
- Business
- Express Tribune
UBG Chief urges SBP to cut interest rate to 6pc
Listen to article S M Tanveer, Patron-in-Chief of the United Business Group (UBG), has called on the State Bank of Pakistan (SBP) to reduce the policy interest rate to 6 per cent, citing low inflation and the need to spur economic growth. In a statement issued on Thursday, Tanveer said the prevailing interest rate of 11pc is disproportionately high, especially given that the Consumer Price Index (CPI) stands at 0.3pc while average inflation is currently hovering around 4pc. He noted that the International Monetary Fund (IMF) recommends maintaining interest rates slightly above the inflation rate to keep them positive in real terms. "At 11pc, Pakistan's interest rate is far above the inflation rate, stifling industrial growth and increasing the cost of doing business," he said. Read More: Profit-taking pulls PSX down after strong opening With the monetary policy announcement due on July 30, Tanveer urged the central bank to consider a significant rate cut. He argued that such a move would reduce the government's interest payments, stimulate investment, and make Pakistani exports more competitive. He pointed out that the government has allocated Rs8.5 trillion for interest payments in the current budget. A cut in the interest rate to 6pc, he claimed, could save nearly Rs3.5 trillion. Highlighting the challenges faced by the business community, Tanveer also criticised certain fiscal measures in the recent budget. In particular, he expressed concern over Sections 37A and 37B of the Income Tax Ordinance, which grant tax authorities the power to arrest and detain. He urged the government to focus on creating a business-friendly environment, noting that high borrowing costs, coupled with soaring energy prices, are already weighing heavily on industry. Also Read: PM Shehbaz hails World Bank position on IWT Meanwhile, the SBP has maintained its policy rate at 11pc in recent months, citing inflationary pressures and vulnerabilities in the external sector. However, with inflation expected to stabilise around the long-term average of 7pc in the coming quarters, analysts believe there may be room for a cautious easing of monetary policy. The external account outlook has improved, buoyed by strong inflows of workers' remittances, and foreign exchange reserves are projected to rise beyond $13 billion by June 2025 — developments that may provide the SBP with greater policy flexibility.
Business Recorder
13 hours ago
- Business
- Business Recorder
SBP likely to cut policy rate in upcoming MPC meeting, say analysts
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is expected to cut the policy rate by 50 basis points (bps) in its upcoming meeting scheduled for Wednesday, July 30, the first MPC meeting of the fiscal year 2025–26, market analysts noted. 'We expect the central bank to announce a cut of 50bps in the upcoming MPC meeting,' said Topline Securities, in its latest report. The brokerage house was of the view that the SBP has further room for around a 100bps cut, as it expects inflation in FY26 to hover between 5-7%, translating into a real rate of 400-600bps, which is well above the historical real rate of 200-300bps. The central bank, in its previous MPC held on June 16, decided to keep the policy rate unchanged at 11%. The decision was in line with market expectations as the majority of market participants were unsure of the rate cut as the federal budget announcement was ahead and Iran-Israel conflict had led to a surge in oil prices, said Topline. The MPC back then noted that the increase in inflation in May to 3.5% year-on-year (y/y) was in line with its expectation, whereas core inflation declined marginally. 'Going forward, inflation is expected to trend up and stabilise in the target range during FY26,' the committee said at the time. Meanwhile, Topline shared that in its poll, 56% of the market participants expect a 50-100bps cut in the upcoming monetary policy meeting compared to 44% in the last poll. While 37% are expecting no change compared to 56% in the last MPC. 'We, in line with market expectations, also expect interest rates to fall to and bottom out at 10% by December 2025,' said the brokerage house. Ismail Iqbal Securities Limited (IISL), another brokerage house, also expected a similar rate cut in the upcoming MPC. 'We expect a 50bps rate cut as inflation continues its downward trajectory,' said IISL in its report on Thursday. The brokerage house noted that both headline and core inflation have moderated significantly, with the base effect largely dissipated and inflation dynamics normalising. 'Additionally, improved currency stability and a more manageable external account further support the case for easing,' it said. Ismail Iqbal shared that the real interest rates remain firmly positive, providing room for a measured monetary adjustment. However, it noted that while growth is recovering, some external sector risks linger; thus, sustained fiscal discipline and improved macro fundamentals make a good case for measured cuts.
The Sun
13 hours ago
- General
- The Sun
M'sian discovers his ex-bully now wants safe school for child
A Malaysian Threads post has gone viral after user @muhamad_amirhakim shared an unexpected story about crossing paths—online—with someone from his school days. The post began innocently enough: 'Last week I came across a parent asking about SBP/MRSM schools that are safe for her child, specifically those with no bullying issues. I got curious and started reading the comments.' But things took an ironic turn when he accidentally clicked on the parent's profile photo. 'Suddenly, I saw her display picture. It's a family photo with her husband. And in my heart, I thought—this guy was the father of all devils in school.' According to @muhamad_amirhakim, the man had a reputation as a serial bully back in the day: 'In my mind, I thought, 'Your husband was the biggest bully back in school. He made others wash his clothes, had others deliver his food, he'd take money from people, and even made others cook his Maggi noodles.'' ALSO READ: Fadhlina reminds schools, principals not to hide bullying cases 'I still have a phobia about it till today.' The revelation left him wondering how times—and people—change. 'I wonder if anyone else has ever met their school bullies again later in life?' The post struck a chord with Malaysians, sparking a flood of personal stories about schoolyard tormentors and their karmic endings. @miza_harun wrote: 'I was bullied for being fat. One day in college, a guy kept fat-shaming me until I lost it. I grabbed his collar and almost punched him. He stopped immediately. I even prayed he'd marry someone bigger than me—and yes, God answered my prayer.' Others shared how life eventually humbled their bullies. @cunacuna1 said: 'I was punched in the face in primary school. Now that guy's a drug addict.' @hzqhlcious added: 'My school bully is now teaching at a primary school. I can't help but laugh.' @hana_shine89 recounted: 'There were three bullies in my school. One apologised in her 30s, another got fat after body-shaming me for being short, and the last one? She now posts about 'anti-bullying' on Instagram. The audacity!'
Business Recorder
19 hours ago
- Business
- Business Recorder
Financial literacy among farmers: SBP BSC awards high-performing banks
KARACHI: The State Bank of Pakistan, Banking Services Corporation (SBP BSC) has awarded high-performing banks for promoting financial literacy among farmers. SBP-BSC held an award ceremony at SBP Karachi, to recognize top-performing banks for their exemplary contributions to the Agriculture Finance Literacy Program (AFLP). Launched in 2023, AFLP is a flagship initiative developed by SBP BSC with support from the SBP's Agriculture Credit and Financial Inclusion Department (AC&FID). The program aims to enhance financial awareness among farmers, particularly new-to-bank, female, and underserved segments- about formal credit systems and making informed borrowing decisions. During its second year, AFLP demonstrated strong nationwide outreach with 6,326 awareness sessions conducted. These sessions helped connect over 105,000 new-to-bank farmers with the banking system, including 10,740 female farmers. Moreover, 3,297 sessions were held in underserved districts, strengthening outreach in less-accessible areas. To ensure quality and consistency, over 400 sessions were physically monitored by SBP BSC field offices. The program also led to significant results on the ground. Over 18,000 farmers availed agricultural loans following their participation in awareness sessions, with total disbursements exceeding Rs. 21.47 billion. The conversion ratio improved notably from 4 percent in Year 1 to 17.12 percent in Year 2, reflecting the effectiveness of the program in turning awareness into financial action. Executive Director SBP, Syed Samar Husnain, while addressing the ceremony, congratulated the awarded banks and praised their dedication and field-level efforts. He emphasized, 'Financial inclusion begins with awareness not just access and literacy is the key to converting that awareness into action.' Senior officials attended the event from SBP and SBP BSC, representatives from the banking industry, and field staff. Copyright Business Recorder, 2025
Business Recorder
19 hours ago
- Business
- Business Recorder
Monetary policy poll: 50-100bps cut expected
KARACHI: As per the market expectations, the State Bank of Pakistan (SBP) is likely to cut the key policy rate in its Monetary Policy Committee (MPC) meeting to be held on July 30, 2025. In a poll conducted by Topline Securities, 56 percent of the market participants expect a 50-100bps cut in upcoming monetary policy meeting compared to 44 percent in last poll. While 37 percent are expecting no change compared to 56 percent in last MPS. In last MPC meeting, majority was not sure about the rate cut as federal budget announcement was ahead and Iran Israel conflict was leading the surge in oil prices. In line with these concerns, state bank also maintained status quo and kept the rate unchanged at 11 percent. In Topline view, the SBP has further room of around 100bps cut as FY26 inflation is expected to be average between 5-7 percent, translating into real rate of 400-600bps (Policy Rate: 11 percent), higher than historical real rate of 200-300bps. Analysts believed, the left-over room is quite notional and will be gradual. 'We expect central bank to announce cut of 50bps in upcoming MPC meeting,' they said. FY26 inflation is expected to average 5-7 percent with July inflation expected in the vrange of 3-3.5 percent. The inflation is expected to remain in range of 3-5 percent till Jan 2026 and in range of 6-8 percent from Feb 2026 to Jun suggests real rate of 400-600bps based on average FY26 inflation of 5-7 percent. The secondary market yields have come down by 10-39bps on KIBOR and T-bills. The 6M KIBOR is currently at 10.99 percent while T-bill is at 10.75 percent. On question related to interest rate target for Dec 2025, 51 percent believed that policy rate will come down to 10 percent by Dec 2025, while 32 percent believe it will be 9 percent by Dec 2025. In line with market participants, Topline also expect interest rate falling to and bottom out at 10 percent by Dec 2025. On currency side, 51 percent participants are expecting currency in range of Rs285-290 by Dec 2025 and while 15 percent each believes that exchange rate will remain in range of 290-295, 295-300, and over 300, respectively. Meanwhile, in T-Bill auction held on Wednesday, participation of Rs1,058 billion was seen with government raising Rs409 billion against a target of Rs200 billion and maturity of Rs361 billion. Yields decreased by 10-39bps, with the current yields standing at 10.85 percent for the 1-month T-Bill, 10.71 percent for the 3-month T-Bill, 10.71 percent for the 6-month T-Bill, and 10.70 percent for the 12-month T-Bill. Copyright Business Recorder, 2025
