Karachi: (RightNow) The State Bank of Pakistan has increased the interest rate by 50 basis points, setting it at 12%. Governor Jameel Ahmed stated that the decision was influenced by rising energy prices due to Middle East tensions.

Governor Ahmed mentioned that the policy rate hike was approved by 9 out of 10 members, with 1 opposing. He noted that high global oil prices could delay inflation targets.

It is important to note that after a global energy price surge in April 2026, this is the first interest rate increase in three years. The last reduction was in December 2025.

The governor reported that remittances are estimated to rise to $45 billion, while exports are expected to range between $32.5 and $33 billion. He added that pressure from increased imports will persist.

Remember that in 2023, foreign exchange reserves were only $2.8 billion, which have now reached $21.5 billion. The governor anticipates further growth.