S&P sees cautious monetary policy despite improving economy

S&P Global Market Intelligence believes Pakistan’s monetary policy is likely to remain cautious despite an improving macroeconomic backdrop, as inflationary pressures and external risks continue to shape the country’s economic outlook. The State Bank of Pakistan’s Monetary Policy Committee has kept the policy rate unchanged at 11.5% in its July 2026 meeting. Commenting on this latest monetary policy announcement by the SBP, Ahmad Mobeen, Principal Economist at S&P Global Market Intelligence, said “State Bank of Pakistan’s decision to keep the policy rate unchanged comes amid a more stable macroeconomic backdrop, supported by easing near-term external pressures and a recovery in activity indicators and sentiment surveys.