Islamabad, December 15, 2025: Prime Minister Muhammad Shehbaz Sharif on Monday welcomed the State Bank of Pakistan’s decision to cut the policy rate by 50 basis points, terming it a timely step that would promote economic activity, provide relief to the public, and support the business community, particularly small and medium enterprises (SMEs).
Expressing satisfaction over the monetary easing, the prime minister said the decision reflected improving macroeconomic indicators and the success of the government’s economic management, according to a statement issued by the Prime Minister’s Office.
He said that, by the grace of Allah, the hard work of the government’s economic team was yielding positive results. The prime minister lauded Federal Minister for Finance Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani, the finance secretary, and their teams for their concerted efforts in stabilising the economy and putting Pakistan back on a growth trajectory.
Placing the decision in a broader context, the prime minister said the country had achieved a degree of economic stability after a challenging period, during which both the business community and the general public made significant sacrifices.
He reiterated the government’s commitment to ensuring that improving economic conditions are translated into tangible relief for citizens to the maximum possible extent.
The prime minister noted that the reduction in the policy rate would lower borrowing costs and make credit more accessible and affordable. This, he said, would particularly benefit SMEs by enabling them to expand operations, generate employment, and contribute more effectively to national economic growth.
Reaffirming the government’s resolve, Prime Minister Shehbaz said Pakistan was moving steadily towards development and that prudent coordination between fiscal and monetary policies would continue to underpin sustainable economic recovery.
