Islamabad: While briefing the Finance Committee of the National Assembly, State Bank officials have revealed that the inflation rate is likely to be between 5 and 7 percent in the next fiscal year, while the current interest rate is 11 percent.
The meeting was chaired by Committee Chairman Naveed Qamar, in which details were presented regarding the economic situation, inflation and growth rate. Officials said that the country’s economic growth rate in the fiscal year 2025 was 2.7 percent, while growth is expected to reach 4 to 4.7 percent in 2026.
According to the State Bank, Pakistan’s current account remained in surplus this year, foreign exchange reserves increased and the exchange rate was stable. Officials explained that interest rates have been kept high due to inflation concerns to ensure financial stability.
The committee members raised the question of why interest rates are not being eased when the inflation rate is low? To this, the State Bank replied that price fluctuations in the global market and future concerns are obstacles to reducing interest rates.
The next monetary policy meeting will be held on September 15, in which more decisions are expected.
