Pakistan’s central bank kept its benchmark policy rate unchanged at 11.5% on Monday, with S&P Global Market Intelligence saying the decision reflects improving macroeconomic stability while maintaining a cautious stance amid persistent inflation and external risks. The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) left the key interest rate unchanged, citing easing near-term external pressures and signs of recovery in economic activity. However, the central bank warned that renewed tensions in the Middle East, volatile global commodity prices, and weather-related risks continue to pose upside risks to inflation. Ahmad Mobeen, principal economist at S&P Global Market Intelligence, said the unchanged policy rate reflects a more stable macroeconomic environment supported by improving economic indicators and business sentiment, but stressed that policy discipline remains essential. Mobeen said Pakistan’s external position is gradually improving, although heavy debt repayment obligations and continued reliance on official financing and rollover arrangements remain significant challenges.