Pakistan finance minister eyes cut to key policy rate from 11 percent

Pakistan Finance Minister Muhammad Aurangzeb speaks during a Reuters interview at the 2025 annual IMF/World Bank Spring Meetings in Washington DC, US, April 25, 2025. (Reuters/File)
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Updated 13 August 2025
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Pakistan finance minister eyes cut to key policy rate from 11 percent

  • The next policy rate announcement is due on September 15
  • Central bank left its key interest rate unchanged at 11 percent on July 30

ISLAMABAD: Pakistan’s finance minister said on Wednesday that there was more room for the central bank to cut the country’s key policy rate down from 11 percent.

“We are hopeful of progress in terms of the policy rate going south,” Mohammed Aurangzeb said at an event in Islamabad.

The next policy rate announcement is due on September 15, according to the State Bank of Pakistan’s calendar.

The central bank left its key interest rate unchanged at 11 percent on July 30, going against analyst expectations. In a Reuters poll ahead of the policy rate announcement, all 15 analysts said they expected the bank to ease, with nine forecasting a 50 basis-point cut, four predicting a deeper 100 basis-point reduction and two projecting a smaller 25 basis-point cut.

The bank, however, held the rate steady, saying the inflation outlook had deteriorated due to rising energy prices.


Magnitude 5.6 earthquake jolts parts of Pakistan, no losses reported

Updated 25 February 2026
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Magnitude 5.6 earthquake jolts parts of Pakistan, no losses reported

  • Tremors were felt in Swat, Peshawar and Chitral in Khyber Pakhtunkhwa, as well as in the federal capital Islamabad
  • Pakistan Meteorological Department measures quake’s depth at 114 km, identifies Hindu Kush region in Afghanistan as epicenter

ISLAMABAD: A 5.6-magnitude earthquake jolted parts of Pakistan on Wednesday evening, the Pakistan Meteorological Department (PMD) said with no loss of lives or massive damage to property reported. 

The tremors were felt in the federal capital, Islamabad, as well as the northwestern cities of Swat, Peshawar and Chitral in Pakistan’s Khyber Pakhtunkhwa province, the PMD said. 

“An earthquake recorded on 25-02-2026 at 16:12 PST with a 5.6-magnitude and a depth of 114km,” the PMD said in a statement. “Its epicenter was the Hindu Kush Region Afghanistan.”

Earthquakes are common in Afghanistan, particularly along the Hindu Kush mountain range, where the Eurasian and Indian tectonic plates meet.

In August last year, a shallow 6-magnitude earthquake in eastern Afghanistan flattened mountainside villages and killed more than 2,200 people. Weeks later, a 6.3-magnitude quake in northern Afghanistan killed at least 27.

Powerful tremors struck western Herat in Afghanistan, near the Iranian border, in 2023, and the Nangarhar province in 2022, killing hundreds and destroying thousands of homes.