ISLAMABAD: Pakistan’s central bank is expected to deliver a sixth consecutive policy rate cut this month, a poll found on Tuesday, ahead of a meeting of the bank’s Monetary Policy Committee (MPC) on Jan. 27.
The State Bank of Pakistan cut its key policy rate by 200 basis points to 13 percent on Dec. 16. This was the fifth straight reduction since June as Pakistan keeps up efforts to revive a sluggish economy with inflation easing.
The move made last year’s cuts one of the most aggressive among emerging market central banks in the current easing cycle. Cumulatively, the SBP cut rates by 900 basis points in the last year.
In a poll conducted by Karachi-based Topline Securities, 61 percent of the participants expected that the central bank will announce a rate cut of 100 basis points.
“Participants are expecting rate cut due to high real rates of 950bps in Jan. 2025, compared to historic average of 200-300bps, despite 900bps cut in total interest rates in last five consecutive meetings since Jun 2024,” Topline Securities said on Tuesday.
“We also hold the view that the SBP will announce a rate cut of 100bps, taking total cut to 1000bps. This will be 6th consecutive cut of this cycle.”
In Dec. the MPC assessed that its approach of measured policy rate cuts was keeping inflationary and external account pressures in check, while supporting economic growth on a sustainable basis.
The central bank noted that it expected inflation to average “substantially below” its earlier forecast range of 11.5 percent to 13.5 percent in 2025.
On the inflation side, 56 percent of the participants expected inflation to remain below 8 percent this fiscal year (July 2024-June 2025), according to Topline Securities.
The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.
The central bank has said that “considerable efforts and additional measures” will be required for Pakistan to meet its annual revenue target, a key focus of the IMF agreement.
POLL: Pakistan central bank set to deliver sixth consecutive rate cut to revive economy
https://arab.news/g2zqs
POLL: Pakistan central bank set to deliver sixth consecutive rate cut to revive economy
- On the inflation side, 56 percent participants of the poll expect inflation to remain below 8 percent this fiscal year
- Pakistan requires ‘considerable efforts, additional measures’ to meet revenue target, central bank says
Pakistan police say two militants killed during gunbattle in northwest
- Police say Tehreek-e-Taliban Pakistan militants ambushed police vehicle on patrol in northwestern Bannu district
- Pakistan has frequently blamed neighboring Afghanistan for facilitating what it calls “cross-border attacks” against it
ISLAMABAD: Police in Pakistan’s Bannu district said on Monday it thwarted an ambush and killed two militants during a fierce gunbattle, as Islamabad grapples with a surge in militant attacks in the northwestern Khyber Pakhtunkhwa (KP) province.
A police vehicle came under attack from militants affiliated with the Tehreek-e-Taliban Pakistan (TTP) or Pakistani Taliban group within the jurisdiction of the Domel Police Station in Bannu, a statement from police said.
The police van was on patrol when TTP militants, who were lying in wait near the district’s Company Road, suddenly opened indiscriminate firing on the police party. Following the attack, both sides traded fire for approximately 20 minutes.
“During the exchange of fire, two militants were killed and weapons were recovered from their possession,” the statement said.
Police launched a search operation in the area after the gunfire ended, during which the bodies of the two militants were recovered. The bodies were shifted to the Khaleefa Gul Nawaz (KGN) Hospital in the area for legal formalities.
Bannu Deputy Inspector General Sajjad Khan praised police for its unwavering commitment in saving people’s lives and for “standing firm against terrorism at all costs.”
“He said operations against elements of Fitna Al-Khawarij will continue under a zero-tolerance policy and those attempting to disrupt peace and order will not be spared under any circumstances,” the police statement said.
Pakistan’s government and army frequently use the term “Fitna Al-Khawarij” to describe TTP militants. The term is drawn from Islamic history for an extremist sect that rebelled against authority and declared other Muslims apostates.
The TTP has carried out some of the deadliest attacks against law enforcement agencies since 2008 in a bid to impose its strict version of Islamic law across Pakistan.
Bannu has also seen several militant attacks in the recent past, with four members of a pro-government peace committee killed by militants in the district earlier this month. In 2025, Bannu police said it recorded 134 attacks on police stations, checkpoints and those targeting its personnel. At least 27 police officers were killed, while authorities say 53 militants died in the clashes.
Pakistan has repeatedly accused neighboring Afghanistan of allowing its soil to be used by armed groups such as the TTP for “cross-border attacks.” It has also alleged that India supports militant groups carrying out attacks against Pakistan. Both Kabul and New Delhi have denied these claims.
