Interest rate falls to single digit, boosting Pakistan’s economy

2026 being seen as a key year for economic stability: see why

In a major positive development for Pakistan’s economy, the interest rate has entered single digits, reflecting the improving impact of government economic policies and reforms.

According to the State Bank of Pakistan’s latest Treasury Bill auction, the interest rate has dropped below 10 percent.

Over the past two years, the interest rate has seen a significant decline from its peak level of 22 percent. As per Topline, the return on the one-month T-bill stood at 9.89 percent.

Experts believe that the reduction in interest rates is likely to provide relief to the public and stimulate industrial activity, investment, and employment opportunities.

The decline is being viewed as a clear sign of growing confidence in Pakistan’s economy.

Pakistan’s economy growing on fast track

Earlier it was reported that a top US-based newspaper said in its report that Pakistan’s economy is growing fast and it is coming on track after a deep dip in the past.

According to a report by the US Daily “USA Today,” Pakistan’s economy is rapidly moving toward growth. The report revealed that strong economic reforms and innovation in the private sector have transformed Pakistan’s investment landscape.

The report further said that Pakistan is entering 2026 with stable institutional discipline, an improved macroeconomic environment, and strong leadership across key sectors.

As per the report, Pakistan’s banking sector has incorporated digital trends and is providing modern facilities to consumers. The report added that due to a stable energy supply, new opportunities are emerging in manufacturing, logistics, and export services, while the mining sector is becoming a fast-growing industry in the country.

“With more than 64% of its population under 30, Pakistan’s demographic profile is one of its most powerful economic drivers. Young consumers are digitally active and increasingly demanding efficient, technology-enabled services,” the newspaper added.

Emerging as a serious military power with battle-hardened armed forces, Pakistan earlier signed a multi-billion dollar deal to export conventional military equipment to Libya.

The agreement places Pakistan among a small group of global arms exporters.

According to Reuters, the deal exceeds $4 billion. It is one of Pakistan’s largest-ever defence export agreements and will contribute towards revival of country’s economy.

Pakistan, under the leadership of Prime Minister Shahbaz Sharif and Field Marshal Syed Asim Munir, has taken significant initiatives for the revival of our economy. Increase in exports is cornerstone of these initiatives.

Also read: Pakistan’s economy growing on fast track, says top US newspaper