Pakistan s central bank, in its latest policy review on Monday, opted to maintain its key interest rate at 22%, aligning with market forecasts. This decision arrives just before an imminent visit by a delegation from the International Monetary Fund (IMF) scheduled for Thursday. The IMF delegation is tasked with assessing the progress made in achieving the objectives outlined in a $3 billion economic assistance program that was sanctioned in July.
The State Bank of Pakistan (SBP) has met its forward book target of $4.2 billion agreed with the IMF by the end of September. The bank is also on track to meet other targets, including net international reserves and net domestic assets. The country is working towards economic recovery with the help of a $3 billion IMF loan program. The SBP s foreign exchange reserves have increased from $3.1 billion to $7.6 billion since January 2023, supported by non-debt creating inflows. Forward foreign exchange liabilities have also decreased.