SBP Releases Second 2026 Report Amid Global Economic Uncertainty

ISLAMABAD: (Finance Reporter) – The State Bank of Pakistan (SBP) has released its second Monetary Policy Report for 2026, providing an overview of economic developments and conditions that influenced the decisions of the Monetary Policy Committee (MPC) since January.

The central bank said the report is intended to improve transparency by explaining the reasoning behind the MPC’s monetary policy stance and outlining the key factors considered when making policy decisions.

The report examines major domestic and international economic developments, including changes in financial conditions, inflationary pressures and external risks that shaped the policy outlook during the review period.

The SBP highlighted geopolitical developments as a major factor affecting Pakistan’s economic environment. According to the report, the outbreak of conflict in the Middle East in late February pushed global energy prices higher and disrupted international supply chains, adding pressure to economies around the world, including Pakistan.

Despite the significant external shock, the SBP said Pakistan’s economic performance during FY2026 remained broadly aligned with the projections made by the Monetary Policy Committee.

The report also said the central bank’s cautious monetary policy approach has helped cushion the domestic economy against the effects of higher energy prices and other external pressures.

The SBP said the latest report provides an assessment of the changing economic landscape and explains the considerations that guided the MPC as it responded to evolving domestic and global conditions.