“The MPC [Monetary Policy Committee] decided that the current policy rate, which is 22pc, will continue. In other words, it decided to maintain status quo,” SBP Governor Jameel Ahmad said during a press conference in Karachi.

According to Ahmad, the foreign exchange reserves increased to more than $8 billion in the last six months.

“This is despite the fact that we have repaid $6.2 billion of principle foreign debt,” he said.

“So despite all these payments, our reserves have increased by $4bn,” the SBP governor added.

For Ahmad, the inflation for the current fiscal year is likely to settle between 23% to 25%.

In May 2023, inflation peaked at 38% but a declining trend has been since then. “Although it still remains elevated, inflation will start declining faster from March,” Ahmad stated.