Published on, Sept. 16 -- September 16, 2025 11:07 AM

The State Bank of Pakistan (SBP) has revised down its projection for economic activities by almost one percentage point in the wake of ongoing floods, reassessing the country's gross domestic product (GDP) growth to be around 3.25% in current fiscal year 2025-26 (FY26).

Earlier in July, the central bank had estimated the growth to be in the range of 3.25%-4.25% for FY26.

The SBP maintained its key policy rate at 11% for the next six weeks on Monday, maintaining status quo for the third consecutive time since June 2025. Earlier, it cut the rate cumulatively by 11% in the prior 11 months, halving the rate to 11% in May from peak of 22% in June 2024.

The bank said the recent floods ha...