Pakistan central bank leaves key rate unchanged in surprise move

A man counts Pakistani rupee notes at a currency exchange shop in Peshawar, Pakistan on September 12, 2023. (REUTERS/File)
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Updated 14 September 2023
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Pakistan central bank leaves key rate unchanged in surprise move

  • Policy committee cites downward trajectory of inflation from May to August as reason for keeping policy rate unchanged
  • Pakistan’s central bank last kept interest rate unchanged when it met in July, having earlier raised it by 12.25 percentage points 

KARACHI: Pakistan’s central bank kept its key interest rate unchanged at 22 percent, announcing the outcome of a policy review in a statement on Thursday that surprised analysts who were expecting an increase of at least 150 basis points.

Battling rising inflation and dwindling foreign exchange reserves, the crisis-ridden South Asian nation is trying to navigate a path to economic recovery under a caretaker government in the wake of a critical $3 billion IMF loan program, approved in July.

Reforms under the program have complicated the task of keeping price pressures in check and protecting an already weak rupee from further declines, with the country passing through a political and economic crisis.

The State Bank of Pakistan’s monetary policy committee kept the key interest rate unchanged when it last met in July, having earlier raised it by 12.25 percentage points to 22 percent since April 2022.


Punjab expands Pakistan-India Wagah border arena with museum, partition-themed park

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Punjab expands Pakistan-India Wagah border arena with museum, partition-themed park

  • The border crossing, near eastern city of Lahore, is the primary land route between Pakistan and India and one of the most recognizable symbols of their often-tense relations
  • The site is best known for its daily flag-lowering ceremony, a choreographed military ritual performed by border forces from both countries that draws thousands of spectators

ISLAMABAD: Maryam Nawaz, chief minister of Pakistan’s Punjab province, on Thursday inaugurated the newly constructed arena at Wagah border cross between Pakistan and India, which includes a museum and a partition themed park.

The Wagah border crossing, located near the eastern city of Lahore, is the primary land route between Pakistan and India and one of the most recognizable symbols of the often-tense relationship between the two neighbors. It serves as a key point for prisoner exchanges and limited movement of travelers, while remaining tightly regulated due to security considerations.

The site is best known for its daily flag-lowering ceremony, a choreographed military ritual performed by border forces from both countries that draws thousands of spectators. Over the years, the ceremony has evolved into a popular tourist attraction, blending displays of nationalism with public spectacle and making it one of Pakistan’s most visited landmarks, which connects with India’s Attari.

Flanked by military officials, CM Nawaz visited the crossing and inaugurated the new arena, with its seating capacity increased from 7,500 to 25,000 spectators, the state-run Radio Pakistan broadcaster reported. The chief minister also visited the martyrs’ monument and offered her respects.

“In addition to the arena’s expansion, several new constructions have been added at the Joint Check Post Wagah. These new developments include a theme park depicting the partition of the Subcontinent, featuring models of a railway station, military equipment and a Martyrs’ Memorial,” the broadcaster reported.

“A Pakistan Museum has also been established within the arena, showcasing the country’s history and culture from the Freedom Movement to the present day.”

In August 1947, Britain divided the Indian Sub-continent, its former colony, into two countries — Hindu-majority India and Muslim-majority Pakistan.

Excitement over independence was quickly overshadowed by some of the worst bloodletting that left up to 1 million people dead as gangs of Hindus and Muslims slaughtered each other.

Creating two independent nations also tore apart millions of Hindu and Muslim families in one of the world’s largest peacetime migrations, which displaced at least 15 million people.

The fate of Kashmir, then a princely state, was left undecided. The Himalayan territory continues to remain a flashpoint in relations between the neighbors, who have fought multiple wars over it.