Pakistan Interest Rate History: SBP Policy Rate 2000 to 2026

SBP policy rate now12%Oct 2026

Last change+50 bpsOct 2026

Real interest rate+2.4%rate minus CPI, Oct 2026

Highest since 200022%Jun 2023 to May 2024

The State Bank of Pakistan (SBP) policy rate is 12% as of October 2026. The SBP last raised it by 50 basis points from 11.5% to 12% in October 2026. This page tracks every policy rate move since 2000: an interactive chart, the real interest rate after inflation, yearly averages, all 71 changes and the full month by month table.

Pakistan interest rate chart

The policy rate is the rate the SBP targets for overnight money between banks. It drives T-bill yields, bank lending and deposit rates and the cost of government borrowing. Tick the box to compare it with CPI inflation.

Policy rate CPI inflation

SBP policy rateCPI inflation (YoY)

Real interest rate in Pakistan

The real rate is the policy rate minus annual CPI inflation. A positive real rate means savers earn more than inflation; a negative one means money in the bank loses buying power. It is +2.4% in October 2026 (12% policy rate against 9.6% inflation). Since 2000 it has been positive in 227 of 322 months. It fell to -16.97% in May 2023 and reached +11.7% in April 2025.

Real rate (policy rate minus CPI)

Pakistan interest rate by year

Average policy rate for each calendar year, or the rate at year end. Over the last ten years the rate averaged 11.66%.

Year	Year end	Average	High	Low	Changes	Avg inflation	Avg real rate
2026 (to Oct)	12%	11.25%	12%	10.5%	2	9.4%	+1.85%
2025	10.5%	11.29%	12%	10.5%	3	3.52%	+7.78%
2024	13%	19.38%	22%	13%	5	13.13%	+6.24%
2023	22%	20.83%	22%	17%	4	30.93%	-10.1%
2022	16%	13.42%	16%	9.75%	4	19.72%	-6.31%
2021	9.75%	7.42%	9.75%	7%	3	9.48%	-2.06%
2020	7%	8.62%	13.25%	7%	4	9.52%	-0.9%
2019	13.25%	12.17%	13.25%	10.25%	4	9.36%	+2.81%
2018	10%	7.42%	10%	6%	5	5.33%	+2.09%
2017	5.75%	5.75%	5.75%	5.75%	0	4.58%	+1.17%
2016	5.75%	5.83%	6%	5.75%	1	3.76%	+2.08%
2015	6%	6.75%	8%	6%	4	2.54%	+4.21%
2014	9%	9.42%	9.5%	9%	2	7.23%	+2.19%
2013	10%	9.46%	10%	9%	3	7.68%	+1.78%
2012	9.5%	11.21%	12%	9.5%	3	9.73%	+1.48%
2011	12%	13.42%	14%	12%	2	11.97%	+1.45%
2010	14%	12.96%	14%	12.5%	3	13.85%	-0.89%
2009	12.5%	13.75%	15%	12.5%	3	13.94%	-0.19%
2008	15%	12.29%	15%	10%	4	20.15%	-7.86%
2007	10%	9.71%	10%	9.5%	1	7.58%	+2.13%
2006	9.5%	8.83%	9.5%	8.5%	2	7.92%	+0.92%
2005	8.5%	8.12%	8.5%	7%	1	9.08%	-0.96%
2004	7%	7%	7%	7%	0	7.43%	-0.43%
2003	7%	7%	7%	7%	0	2.92%	+4.08%
2002	7%	8.25%	8.5%	7%	2	3.28%	+4.97%
2001	9.5%	11.67%	13.5%	9.5%	4	3.16%	+8.5%
2000	12.5%	11.08%	12.5%	10.5%	2	4.36%	+6.72%

Every SBP policy rate change since 2000

The SBP changed the policy rate 71 times since 2000: 38 hikes and 33 cuts. The biggest single hike was 300 basis points and the biggest single cut 250 basis points. Red bars are hikes, green bars are cuts.

Month	From	To	Change	Move	CPI that month
26 Oct 2026	11.5%	12%	+50 bps	Hike	9.6%
Apr 2026	10.5%	11.5%	+100 bps	Hike	10.9%
Dec 2025	11%	10.5%	−50 bps	Cut	5.6%
May 2025	12%	11%	−100 bps	Cut	3.5%
Jan 2025	13%	12%	−100 bps	Cut	2.4%
Dec 2024	15%	13%	−200 bps	Cut	4.1%
Nov 2024	17.5%	15%	−250 bps	Cut	4.9%
Sep 2024	19.5%	17.5%	−200 bps	Cut	6.9%
Jul 2024	20.5%	19.5%	−100 bps	Cut	11.1%
Jun 2024	22%	20.5%	−150 bps	Cut	12.6%
Jun 2023	21%	22%	+100 bps	Hike	29.4%
Apr 2023	20%	21%	+100 bps	Hike	36.42%
Mar 2023	17%	20%	+300 bps	Hike	35.4%
Jan 2023	16%	17%	+100 bps	Hike	27.6%
Nov 2022	15%	16%	+100 bps	Hike	23.8%
Jul 2022	13.75%	15%	+125 bps	Hike	24.93%
May 2022	12.25%	13.75%	+150 bps	Hike	13.8%
Apr 2022	9.75%	12.25%	+250 bps	Hike	13.4%
Dec 2021	8.75%	9.75%	+100 bps	Hike	12.3%
Nov 2021	7.25%	8.75%	+150 bps	Hike	11.5%
Sep 2021	7%	7.25%	+25 bps	Hike	8.98%
Jun 2020	8%	7%	−100 bps	Cut	8.59%
May 2020	9%	8%	−100 bps	Cut	8.22%
Apr 2020	11%	9%	−200 bps	Cut	8.5%
Mar 2020	13.25%	11%	−225 bps	Cut	10.2%
Jul 2019	12.25%	13.25%	+100 bps	Hike	8.4%
May 2019	10.75%	12.25%	+150 bps	Hike	8.4%
Mar 2019	10.25%	10.75%	+50 bps	Hike	8.6%
Jan 2019	10%	10.25%	+25 bps	Hike	5.6%
Nov 2018	8.5%	10%	+150 bps	Hike	5.7%
Sep 2018	7.5%	8.5%	+100 bps	Hike	5.4%
Jul 2018	6.5%	7.5%	+100 bps	Hike	6.7%
May 2018	6%	6.5%	+50 bps	Hike	5%
Jan 2018	5.75%	6%	+25 bps	Hike	5.2%
May 2016	6%	5.75%	−25 bps	Cut	3.17%
Sep 2015	6.5%	6%	−50 bps	Cut	1.32%
May 2015	7.5%	6.5%	−100 bps	Cut	3.16%
Mar 2015	8%	7.5%	−50 bps	Cut	2.49%
Jan 2015	9%	8%	−100 bps	Cut	3.88%
Nov 2014	9.5%	9%	−50 bps	Cut	3.96%
Jan 2014	10%	9.5%	−50 bps	Cut	7.91%
Nov 2013	9.5%	10%	+50 bps	Hike	10.9%
Sep 2013	9%	9.5%	+50 bps	Hike	7.39%
Jun 2013	9.5%	9%	−50 bps	Cut	5.85%
Dec 2012	10%	9.5%	−50 bps	Cut	7.93%
Oct 2012	10.5%	10%	−50 bps	Cut	7.66%
Aug 2012	12%	10.5%	−150 bps	Cut	9.06%
Oct 2011	13.5%	12%	−150 bps	Cut	10.97%
Aug 2011	14%	13.5%	−50 bps	Cut	11.56%
Nov 2010	13.5%	14%	+50 bps	Hike	15%
Sep 2010	13%	13.5%	+50 bps	Hike	15.42%
Aug 2010	12.5%	13%	+50 bps	Hike	13.63%
Nov 2009	13%	12.5%	−50 bps	Cut	10.51%
Aug 2009	14%	13%	−100 bps	Cut	10.69%
Apr 2009	15%	14%	−100 bps	Cut	17.19%
Nov 2008	13%	15%	+200 bps	Hike	24.68%
Jul 2008	12%	13%	+100 bps	Hike	24.33%
May 2008	10.5%	12%	+150 bps	Hike	19.27%
Feb 2008	10%	10.5%	+50 bps	Hike	11.25%
Aug 2007	9.5%	10%	+50 bps	Hike	6.45%
Nov 2006	9%	9.5%	+50 bps	Hike	8.07%
Jul 2006	8.5%	9%	+50 bps	Hike	7.63%
Apr 2005	7%	8.5%	+150 bps	Hike	11.1%
Nov 2002	8.5%	7%	−150 bps	Cut	3.03%
Jan 2002	9.5%	8.5%	−100 bps	Cut	2%
Oct 2001	11.5%	9.5%	−200 bps	Cut	2.51%
Aug 2001	12.5%	11.5%	−100 bps	Cut	3.31%
Jul 2001	13.5%	12.5%	−100 bps	Cut	2.48%
Jun 2001	12.5%	13.5%	+100 bps	Hike	2.52%
Oct 2000	11.5%	12.5%	+100 bps	Hike	4.56%
Sep 2000	10.5%	11.5%	+100 bps	Hike	5.05%

Rate hiking and cutting cycles

Consecutive moves in the same direction grouped into cycles. The latest is a hiking cycle that started in April 2026.

Cycle	First move	Last move	Moves	From	To	Total
Hiking	Apr 2026	Oct 2026	2	10.5%	12%	+1.5 pts
Cutting	Jun 2024	Dec 2025	8	22%	10.5%	-11.5 pts
Hiking	Sep 2021	Jun 2023	11	7%	22%	+15 pts
Cutting	Mar 2020	Jun 2020	4	13.25%	7%	-6.25 pts
Hiking	Jan 2018	Jul 2019	9	5.75%	13.25%	+7.5 pts
Cutting	Jan 2014	May 2016	7	10%	5.75%	-4.25 pts
Hiking	Sep 2013	Nov 2013	2	9%	10%	+1 pts
Cutting	Aug 2011	Jun 2013	6	14%	9%	-5 pts
Hiking	Aug 2010	Nov 2010	3	12.5%	14%	+1.5 pts
Cutting	Apr 2009	Nov 2009	3	15%	12.5%	-2.5 pts
Hiking	Apr 2005	Nov 2008	8	7%	15%	+8 pts
Cutting	Jul 2001	Nov 2002	5	13.5%	7%	-6.5 pts
Hiking	Sep 2000	Jun 2001	3	10.5%	13.5%	+3 pts

Pakistan interest rate history table (monthly)

SBP policy rate at the end of each month, in percent. Red means a higher rate, green a lower one.

Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2026	10.5	10.5	10.5	11.5	11.5	11.5	11.5	11.5	11.5	12
2025	12	12	12	12	11	11	11	11	11	11	11	10.5
2024	22	22	22	22	22	20.5	19.5	19.5	17.5	17.5	15	13
2023	17	17	20	21	21	22	22	22	22	22	22	22
2022	9.75	9.75	9.75	12.25	13.75	13.75	15	15	15	15	16	16
2021	7	7	7	7	7	7	7	7	7.25	7.25	8.75	9.75
2020	13.25	13.25	11	9	8	7	7	7	7	7	7	7
2019	10.25	10.25	10.75	10.75	12.25	12.25	13.25	13.25	13.25	13.25	13.25	13.25
2018	6	6	6	6	6.5	6.5	7.5	7.5	8.5	8.5	10	10
2017	5.75	5.75	5.75	5.75	5.75	5.75	5.75	5.75	5.75	5.75	5.75	5.75
2016	6	6	6	6	5.75	5.75	5.75	5.75	5.75	5.75	5.75	5.75
2015	8	8	7.5	7.5	6.5	6.5	6.5	6.5	6	6	6	6
2014	9.5	9.5	9.5	9.5	9.5	9.5	9.5	9.5	9.5	9.5	9	9
2013	9.5	9.5	9.5	9.5	9.5	9	9	9	9.5	9.5	10	10
2012	12	12	12	12	12	12	12	10.5	10.5	10	10	9.5
2011	14	14	14	14	14	14	14	13.5	13.5	12	12	12
2010	12.5	12.5	12.5	12.5	12.5	12.5	12.5	13	13.5	13.5	14	14
2009	15	15	15	14	14	14	14	13	13	13	12.5	12.5
2008	10	10.5	10.5	10.5	12	12	13	13	13	13	15	15
2007	9.5	9.5	9.5	9.5	9.5	9.5	9.5	10	10	10	10	10
2006	8.5	8.5	8.5	8.5	8.5	8.5	9	9	9	9	9.5	9.5
2005	7	7	7	8.5	8.5	8.5	8.5	8.5	8.5	8.5	8.5	8.5
2004	7	7	7	7	7	7	7	7	7	7	7	7
2003	7	7	7	7	7	7	7	7	7	7	7	7
2002	8.5	8.5	8.5	8.5	8.5	8.5	8.5	8.5	8.5	8.5	7	7
2001	12.5	12.5	12.5	12.5	12.5	13.5	12.5	11.5	11.5	9.5	9.5	9.5
2000	10.5	10.5	10.5	10.5	10.5	10.5	10.5	10.5	11.5	12.5	12.5	12.5

What moves the policy rate

The SBP Monetary Policy Committee sets the rate at scheduled meetings. It weighs inflation and the inflation outlook, the current account and foreign exchange reserves, the rupee, government borrowing and growth. When inflation runs well above target the SBP usually hikes to keep the real rate positive; when inflation falls it has room to cut. The 2022 to 2023 hikes to 22% followed inflation of up to 37.97%, and the 2024 to 2025 cuts came as inflation dropped back into single digits.

Why it matters for investors

A lower policy rate makes bank deposits, T-bills and income funds less attractive and lowers borrowing costs, which has usually helped Pakistan stocks. Higher rates do the opposite and tend to lift banks' interest income. See how the KSE-100 has done through rate cycles on the KSE allocation page, and inflation in full on the Pakistan inflation history page. The Pakistan economy dashboard has the other monthly indicators.

Source: State Bank of Pakistan (policy rate) and Pakistan Bureau of Statistics (CPI inflation). Monthly data from January 2000 to October 2026. For information only, not investment advice.

Frequently asked questions

What is the current interest rate in Pakistan?

The SBP policy rate is 12% as of October 2026. The SBP last raised it by 50 basis points from 11.5% to 12% in October 2026.

What is the highest interest rate in Pakistan's history?

Since 2000 the highest policy rate was 22%, held from June 2023 to May 2024. Inflation peaked at 37.97% in May 2023.

What is the lowest interest rate in Pakistan?

The lowest policy rate since 2000 was 5.75%, from May 2016 to December 2017.

How many times has the SBP changed the interest rate?

The SBP changed the policy rate 71 times between 2000 and 2026: 38 hikes and 33 cuts.

What is the real interest rate in Pakistan?

The real rate, the policy rate minus annual CPI inflation, is +2.4% in October 2026: a 12% policy rate against 9.6% inflation.

What was the average interest rate in Pakistan over the last 10 years?

The SBP policy rate averaged 11.66% over the 10 years to October 2026, and 10.52% since 2000.

Who sets the interest rate in Pakistan?

The Monetary Policy Committee of the State Bank of Pakistan sets the policy rate at scheduled meetings and explains each decision in a monetary policy statement.