External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Macroeconomics

<ul><li>Monetary Policy Committee (MPC) of State Bank of Pakistan (SBP) has reduced policy rate by 50bps to 10.50% in today’s meeting. This came as a surprise in our view as majority of the participants were expecting rates to remain unchanged.</li><li>As per MPC statement, Inflation averaged within the target range of 5–7% during 5MFY26. Alongside the strengthening of economic activity, the MPC noted the available space to reduce the policy rate to support sustainable economic growth. To note, SBP expects GDP growth for FY26 to remain in upper half of the projected range of 3.25%-4.25%.</li><li>SBP Governor anticipates stronger inflows from the government side in 2HFY26. Till Dec 12, 2025, Government official inflows remained only US$2.1bn which includes US$1.2bn from IMF. So they are expecting all the inflows planned by Government to be received in 2HFY26.</li></ul>

Monetary Policy Committee (MPC) of State Bank of Pakistan (SBP) has reduced policy rate by 50bps to 10.50% in today’s meeting. This came as a surprise in our view as majority of the participants were expecting rates to remain unchanged.As per MPC statement, Inflation averaged within the target range of 5–7% during 5MFY26. Alongside the strengthening of economic activity, the MPC noted the available space to reduce the policy rate to support sustainable economic growth. To note, SBP expects GDP growth for FY26 to remain in upper half of the projected range of 3.25%-4.25%.SBP Governor anticipates stronger inflows from the government side in 2HFY26. Till Dec 12, 2025, Government official inflows remained only US$2.1bn which includes US$1.2bn from IMF. So they are expecting all the inflows planned by Government to be received in 2HFY26.

Pakistan Economy - SBP Reduced Policy Rate By 50bps; Flows Are Expected To Be Better In 2HFY26