The benchmark interest rate in Pakistan was last recorded at 12 percent. This dataset provides - Pakistan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about Pakistan Policy Rate

• Pakistan cash rate (State Bank of Pakistan: Reverse Repo Rate) was set at 13.00 % pa in Feb 2025, compared with 13.00 % pa in the previous Jan 2025.
• Pakistan Policy Rate averaged 12.00 % pa and is updated monthly, available from Feb 1992 to Feb 2025.
• The data reached an all-time high of 23.00 % pa in May 2024 and a record low of 6.25 % pa in Dec 2017.

• In the latest reports, Pakistan Short Term Interest Rate: Month End: Pakistan: Interbank Rate: Karachi Average: 3 Months was reported at 22.91 % pa in Jun 2023.
• Its Long Term Interest Rate (Long Term Interest Rate: Month End: Pakistan: Government Bond Yield: 10 Years) was reported at 11.00 % pa in Jun 2023.
• Pakistan Exchange Rate against USD averaged 286.58 (USD/PKR) in Jun 2023.
• Its Real Effective Exchange Rate was 103.70 in Dec 2024.

The real interest rate in Pakistan decreased by 2.2 percentage points (-297.3 percent) compared to the previous year. This was a significant decrease in the real interest rate. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator.Find more statistics on other topics about Pakistan with key insights such as deposit interest rate, domestic credit to the private sector as a share of GDP, and broad money as a percentage of GDP.

Throughout 2022, central bank benchmark interest rates were hiked in most Asia-Pacific countries and territories. The State Bank of Pakistan set the highest interest rate in the region throughout the year, raising it from 9.75 percent in January to 15 percent as of October 2022. September 2022 saw the central banks of all Southeast Asian economies as well as India and Taiwan raise benchmark interest rates in order to curb inflation.

Pakistan PK: Discount Rate: End of Period data was reported at 6.250 % pa in 2017. This stayed constant from the previous number of 6.250 % pa for 2016. Pakistan PK: Discount Rate: End of Period data is updated yearly, averaging 10.000 % pa from Dec 1994 (Median) to 2017, with 24 observations. The data reached an all-time high of 20.000 % pa in 1996 and a record low of 6.250 % pa in 2017. Pakistan PK: Discount Rate: End of Period data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Pakistan – Table PK.IMF.IFS: Money Market and Policy Rates: Annual.

Pakistan PK: Deposit Interest Rate data was reported at 4.478 % pa in 2017. This records a decrease from the previous number of 4.834 % pa for 2016. Pakistan PK: Deposit Interest Rate data is updated yearly, averaging 6.445 % pa from Dec 2004 (Median) to 2017, with 14 observations. The data reached an all-time high of 8.681 % pa in 2009 and a record low of 1.634 % pa in 2004. Pakistan PK: Deposit Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank: Interest Rates. Deposit interest rate is the rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; ;

In 2021, the deposit interest rate in Pakistan decreased by 1.7 percentage points (-22.76 percent) compared to 2020. Nevertheless, the last two years recorded a significantly higher deposit interest rate than the preceding years.Deposit rate refers to the amount of money paid out in interest by a bank of financial institution on cash deposits.Find more statistics on other topics about Pakistan with key insights such as broad money as a percentage of GDP, domestic credit to the private sector as a share of GDP, and real interest rate.

Pakistan PK: Lending Interest Rate data was reported at 8.210 % pa in 2017. This records a decrease from the previous number of 8.755 % pa for 2016. Pakistan PK: Lending Interest Rate data is updated yearly, averaging 11.749 % pa from Dec 2004 (Median) to 2017, with 14 observations. The data reached an all-time high of 14.537 % pa in 2009 and a record low of 7.258 % pa in 2004. Pakistan PK: Lending Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank: Interest Rates. Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector. This rate is normally differentiated according to creditworthiness of borrowers and objectives of financing. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; ;

Economic welfare is essential in the modern economy since it directly reflects the standard of living, distribution of resources, and general social satisfaction, which influences individual and social well-being. This study aims to explore the relationship between national income accounting different attributes and the economic welfare in Pakistan. However, this study used data from 1950 to 2022, and data was downloaded from the World Bank data portal. Regression analysis is used to investigate the relationship between them and is very effective in measuring the relationship between endogenous and exogenous variables. Moreover, generalized methods of movement (GMM) are used as the robustness of the regression. Our results show that foreign direct investment outflow, Gross domestic product growth rate, GDP per capita, higher Interest, market capitalization, and population growth have a significant negative on the unemployment rate, indicating the rise in these factors leads to a decrease in the employment rate in Pakistan. Trade and savings have a significant positive impact on the unemployment rate, indicating the rise in these factors leads to an increase in the unemployment rate for various reasons. Moreover, all the factors of national income accounting have a significant positive relationship with life expectancy, indicating that an increase in these factors leads to an increase in economic welfare and life expectancy due to better health facilities, many resources, and correct economic policies. However, foreign direct investment, inflation rate, lending interest rate, and population growth have significant positive effects on age dependency, indicating these factors increase the age dependency. Moreover, GDP growth and GDP per capita negatively impact age dependency. Similarly, all the national income accounting factors have a significant negative relationship with legal rights that leads to decreased legal rights. Moreover, due to better health facilities and health planning, there is a negative significant relationship between national income accounting attributes and motility rate among children. Our study advocated the implications for the policymakers and the government to make policies for the welfare and increase the social factors.

In December 2024, the benchmark interest rate in Pakistan stood at 13 percent. Bangladesh's central bank policy rate stood at 10 percent that month, counteracting the country's high inflation.

Deposit interest rate (%) in Pakistan was reported at 5.7515 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. Pakistan - Deposit interest rate - actual values, historical data, forecasts and projections were sourced from the World Bank on March of 2025.

In 2018, the estimated average inflation rate in Pakistan amounted to about 3.93 percent compared to the previous year, a slight drop from 2017, but an ever sharper one compared to four years earlier. Over the next few years, forecasts estimate it to level off at around 6.5 percent.

Pakistan‘s more or less fragile economy

Pakistan is one of the most populous countries in the worldwith a large Muslim population and a rather low urbanization rate, which means that the majority of Pakistanis live in rural areas. However, the majority of the country's GDP is generated by the services sector, which also employs most of the workforce. As of now, Pakistan’s economic growth seems stable, but that wasn’t always the case.

Stable growth ahead?

Like many others, Pakistan’s economy suffered during the 2009 financial crisis, and while it has recovered today, inflation was still over 10 percent in 2012. GDP slumped during that time as well, but now, ten years later, it has almost tripled and seems to be on an upward trend. Although its GDP generation now mainly relies on services, Pakistan still exports agricultural goods like cotton. However, the country still struggles with an increasing trade deficit and thus rising national debt – two factors that could hinder economic growth in the future.

Pakistan PK: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at 3.038 % pa in 2015. This records an increase from the previous number of 1.840 % pa for 2014. Pakistan PK: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 2.233 % pa from Dec 2004 (Median) to 2015, with 12 observations. The data reached an all-time high of 4.768 % pa in 2004 and a record low of 1.304 % pa in 2011. Pakistan PK: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank.WDI: Interest Rates. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the 'risk free' treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics database.; ;

Inflation Rate in Pakistan decreased to 1.50 percent in February from 2.40 percent in January of 2025. This dataset provides the latest reported value for - Pakistan Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The benchmark interest rate in the United States was last recorded at 4.50 percent. This dataset provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Pakistan PK: External Debt: DOD: Stocks: Variable Rate data was reported at 17.505 USD bn in 2016. This records an increase from the previous number of 14.101 USD bn for 2015. Pakistan PK: External Debt: DOD: Stocks: Variable Rate data is updated yearly, averaging 5.243 USD bn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 17.505 USD bn in 2016 and a record low of 5.000 USD mn in 1970. Pakistan PK: External Debt: DOD: Stocks: Variable Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank: External Debt: Debt Outstanding, Debt Ratio and Debt Service. Variable interest rate is long-term external debt with interest rates that float with movements in a key market rate; for example, the London interbank offered rate (LIBOR) or the U.S. prime rate. This item conveys information about the borrower's exposure to changes in international interest rates. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

This paper investigates the long-run and short-run relationship between money supply and inflation in Pakistan, utilizing annual data spanning from 1981 to 2021. The key objective is to assess the impact of monetary policy, specifically money supply, on inflation dynamics in the country. To achieve this, the Autoregressive Distributed Lag (ARDL) bounds testing approach is employed, which is suitable for analyzing cointegration among variables with mixed integration orders. The results reveal both short and long-run cointegration between inflation, money supply, unemployment, and interest rates. Notably, unemployment demonstrates a negative correlation with inflation, while money supply and interest rates exhibit a positive relationship. These findings underscore the importance of dedicated policy measures to manage inflation effectively. The paper concludes by recommending the establishment of a policy implementation body and collaboration between the government and the central bank to ensure financial stability and control inflation through well-calibrated monetary and fiscal policies.

Pakistan PK: External Debt: Average Interest on New External Debt Commitments data was reported at 4.813 % in 2017. This records an increase from the previous number of 2.864 % for 2016. Pakistan PK: External Debt: Average Interest on New External Debt Commitments data is updated yearly, averaging 3.964 % from Dec 1970 (Median) to 2017, with 48 observations. The data reached an all-time high of 7.546 % in 1981 and a record low of 1.063 % in 2011. Pakistan PK: External Debt: Average Interest on New External Debt Commitments data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank.WDI: External Debt: Terms and Undisbursed Debt. Interest represents the average interest rate on all new public and publicly guaranteed loans contracted during the year. To obtain the average, the interest rates for all public and publicly guaranteed loans have been weighted by the amounts of the loans. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity.; ; World Bank, International Debt Statistics.; Weighted average;

Pakistan Lending Rate: Interest Bearing (IB): WA: Scheduled Banks: Total data was reported at 8.670 % pa in Dec 2017. This records a decrease from the previous number of 8.880 % pa for Jun 2017. Pakistan Lending Rate: Interest Bearing (IB): WA: Scheduled Banks: Total data is updated semiannually, averaging 11.275 % pa from Jun 1983 (Median) to Dec 2017, with 70 observations. The data reached an all-time high of 16.090 % pa in Jun 1998 and a record low of 5.600 % pa in Dec 2004. Pakistan Lending Rate: Interest Bearing (IB): WA: Scheduled Banks: Total data remains active status in CEIC and is reported by State Bank of Pakistan. The data is categorized under Global Database’s Pakistan – Table PK.M007: Lending Rate By Borrowers.

Pakistan PK: CPIA: Fiscal Policy Rating: 1=Low To 6=High data was reported at 2.500 NA in 2017. This records a decrease from the previous number of 3.000 NA for 2016. Pakistan PK: CPIA: Fiscal Policy Rating: 1=Low To 6=High data is updated yearly, averaging 3.000 NA from Jun 2005 (Median) to 2017, with 13 observations. The data reached an all-time high of 3.500 NA in 2007 and a record low of 2.500 NA in 2017. Pakistan PK: CPIA: Fiscal Policy Rating: 1=Low To 6=High data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank.WDI: Policy and Institutions. Fiscal policy assesses the short- and medium-term sustainability of fiscal policy (taking into account monetary and exchange rate policy and the sustainability of the public debt) and its impact on growth.; ; World Bank Group, CPIA database (http://www.worldbank.org/ida).; Unweighted average;