State Bank of Pakistan Raises Interest Rate to 11.5% Amid Economic Pressures

The State Bank of Pakistan has announced a new monetary policy, increasing the benchmark interest rate by 100 basis points, bringing it to 11.5%.

Previously, in its March 9, 2026 meeting, the central bank had maintained the policy rate at 10.5%, in line with market expectations. However, ongoing geopolitical tensions and economic pressures led to divided opinions among experts this time.

Ali Khizar, Director Research at Business Recorder, had suggested a 50 basis points increase, stating that a moderate hike would help reduce market uncertainty. Meanwhile, Arif Habib Limited expected the rate to remain unchanged, arguing that a cautious approach was more suitable amid global uncertainty.

Topline Securities had also forecast a 50 basis points increase to counter rising oil prices and import pressures. According to their survey, 53% of participants supported a rate hike.

Experts believe that while the increase in interest rates may help control inflation, it could also impact business activities and investment levels.