RAWALPINDI, Aug. 13 -- Finance Minister Muhammad Aurangzeb expressed confidence on Wednesday that Pakistan could see a policy rate cut later this year. Speaking at the 78th Independence Day and Marka-e-Haque event at the Rawalpindi Chamber of Commerce & Industry (RCCI), he cited easing inflation and improved economic indicators as reasons for cautious optimism. Although the decision rests with the State Bank and the Monetary Policy Committee (MPC), he believes there is "room to do more."

Aurangzeb's remarks come a month after the MPC kept the policy rate unchanged at 11%, surprising analysts who expected a cut of 50-100 basis points. However, inflation in June 2025 dropped to 3.2% year-on-year, largely due to falling food prices. Core in...