Story perspectives

Pakistan Cuts Policy Rate to Boost Economic Growth

12/16/2025

Summary

Story summary

On December 15, 2025, the State Bank of Pakistan (SBP) reduced its policy rate by 50 basis points to 10.5% to support growth while containing inflation.
The move followed four consecutive policy holds.
It came despite warnings from the International Monetary Fund against premature easing.
Analysts say the cut signals a supportive policy direction.
Prime Minister Shehbaz Sharif welcomed the decision as helping small and medium-sized enterprises (SMEs), while business groups urge single-digit rates to spur growth.

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Story summary

On December 15, 2025, the State Bank of Pakistan (SBP) reduced its policy rate by 50 basis points to 10.5% to support growth while containing inflation.
The move followed four consecutive policy holds.
It came despite warnings from the International Monetary Fund against premature easing.
Analysts say the cut signals a supportive policy direction.
Prime Minister Shehbaz Sharif welcomed the decision as helping small and medium-sized enterprises (SMEs), while business groups urge single-digit rates to spur growth.