The State Bank of Pakistan (SBP) has cut the key policy rate by 200 basis points to 13 percent to stimulate economic growth and ensure financial stability. This decision comes at a time when economic growth is slowing down and inflation has seen a slight decrease.
The reduction aims to lower the cost of borrowing, boost investment, and encourage economic activity. It will make loans cheaper for businesses and provide more financial opportunities for consumers. Experts believe this move could be a significant step toward improving Pakistan’s economy, especially during a period of growing global financial pressure.
However, the impact of this decision will depend on the government’s other economic policies and the state of global markets.
