Pakistan’s central bank keeps interest rate on hold at 22 percent

The logo of the State Bank of Pakistan (SBP) is pictured on a reception desk at the head office in Karachi, Pakistan July 16, 2019. (Photo courtesy: REUTERS/FILE)
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Updated 18 March 2024
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Pakistan’s central bank keeps interest rate on hold at 22 percent

  • Interest rate unchanged for sixth straight meeting as per expectations of majority of analysts
  • Bank said although inflation rate eased in February, it remained high and subject to risks

KARACHI: Pakistan’s central bank on Monday held its key interest rate at 22 percent for the sixth straight policy meeting as inflation risks continued to loom.
The decision was in line with the expectations of a majority of analysts, although most are also expecting rate cuts from the second quarter of this year.
The bank said that although the inflation rate had eased in February, it remained high and subject to risks.
“This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5–7 percent by September 2025,” the State Bank of Pakistan’s (SBP) monetary policy committee said in a statement.
Monday’s policy decision is the last ahead of the April expiry of a $3 billion Stand by Arrangement with the International Monetary Fund.
Pakistan’s key rate was last raised in June to fight persistent inflationary pressures and to meet one of the conditions set by the IMF for securing the critical bailout. 

 

 


Pakistan seeks to boost coffee, tea imports from Rwanda as café culture grows

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Pakistan seeks to boost coffee, tea imports from Rwanda as café culture grows

  • Commerce minister attends Rwanda Coffee Festival being held in Islamabad from Jan. 29-30
  • Coffee culture in Pakistan is on the rise among young residents of major urban centers

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan has expressed interest in increasing coffee and tea imports from Rwanda, according to an official statement on Thursday, as the country’s coffee culture continues to grow with boutique cafes and specialty roasters.

The Rwanda High Commission has organized a two-day Rwanda Coffee Festival in Islamabad starting today, which was also attended by the minister.

Pakistan has primarily been a tea-drinking nation that has witnessed an ascendance of coffee culture, especially among young people in major cities such as Karachi, Lahore and Islamabad, where the expansion of international coffee chains, boutique cafes and specialty roasters has transformed it from a niche beverage into a lifestyle choice.

“Pakistan is interested in increasing imports of coffee and tea from Rwanda,” Khan said while addressing the coffee festival, according to the commerce ministry.

“The Rwanda Coffee Festival is a symbol of strengthening Pakistan-Africa trade ties,” he added. “The Rwanda Coffee Festival will give a new dimension to cultural and trade partnership.”

The ministry said in the statement Khan called for the establishment of a direct import-export supply line between Pakistan and Rwanda, adding that the country was also keen to sign a memorandum of understanding in the near future.

Rwanda’s Trade Minister Prudence Sebahizi announced on the occasion that his country served as a gateway to Africa’s $1.4 billion consumer market, adding it was open to investment from the Pakistani business community.

The ministry said he highlighted that barrier-free exports to African markets were possible after production in Rwanda.

It added Pakistan already exports high-quality rice, textiles and pharmaceutical products to Rwanda, while noting that more than 200 Rwandan traders have visited the country over the past two years.

Pakistan imported coffee, tea, mate and spices worth $846 million in 2023‑24, according to combined data from the State Bank of Pakistan. According to the World Bank’s international trade database, Pakistan imported roasted coffee from around the world valued at $940,000 in 2023.

Rising social media trends and the popularity of specialty brews, cold coffees and artisanal blends are driving demand, while local entrepreneurs experiment with unique flavors and homegrown beans.