KARACHI:

The State Bank of Pakistan (SBP) has kept the , citing short-term economic disruption due to the recent rains and floods. The bank has projected the GDP growth for FY2025-26 to remain near the lower end of its 3.25% to 4.25% forecast range.

The central bank said while the broader economy remains resilient, the recent floods have increased downside risks to growth, and the current account outlook as well as a risk of rising inflation.

In its latest monetary policy statement, the SBP warned that flood-related damage, particularly to the agricultural sector, is likely to slow economic momentum and exert upward pressure on food prices, potentially pushing inflation above the official 5-7% target range.

Inflation had eased in recent months — recorded at 4.1% in July and 3% in Augus

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