Pakistan, Oct. 27 -- The State Bank of Pakistan (SBP) on Monday raised its policy rate by 50 basis points to 12 percent, with Governor Jameel Ahmad maintaining that export stagnation was not linked to interest rates, citing concessional financing and performance-based incentives available to exporters.

The Monetary Policy Committee (MPC) increased the rate from 11.5pc to 12pc, with nine of its 10 members voting in favour of the decision, effective October 27, 2026.

Explaining the decision, Ahmad said escalating geopolitical tensions in the Middle East, persistently elevated global energy prices and domestic wheat supply disruptions had worsened the inflation outlook, necessitating a monetary policy response.

Addressing concerns over hi...