The State Bank of Pakistan (SBP) increased its policy rate by 100 basis points to 11.5% on April 27, 2026, in response to escalating inflation and geopolitical tensions, particularly the ongoing Middle East conflict. The Monetary Policy Committee (MPC) cited concerns over rising oil prices and supply chain disruptions, which are expected to push inflation above the target range. The decision aims to stabilize macroeconomic conditions, but it has drawn significant backlash from the business community, which argues that the hike will increase borrowing costs and hinder economic recovery efforts.
BUSINESSPublished 27 Apr 2026 • Published 13h ago • Updated 5h ago
SBP Raises Policy Rate to 11.5% Amid Inflation Concerns
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On April 27, 2026, the State Bank of Pakistan raised its policy rate from 10.5% to 11.5%, the first hike in three years, amid rising inflation and geopolitical tensions. The business community, including KCCI and FPCCI, criticized the move, arguing it could harm industrial growth and competitiveness.
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DTPdailythepatriot.com
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PPprofit.pakistantoday.com.pk
BRbrecorder.com
TNBnation.com.pk
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