SBP Slashes Policy Rate By 100bps To 11%; MPC Reviews Financial Situation

SBP - The News Today - TNT
Islamabad:  Rising tobacco and nicotine use among Pakistan’s youth, especially around educational institutions, emerged as the central concern at a national review session on tobacco control held by the Aurat Foundation in Islamabad. Participants from Parliament, government departments, health organizations, and civil society warned that easy availability of cigarettes, vapes, nicotine pouches, and flavored tobacco near schools is creating a growing public health threat. The discussion also pointed to a noticeable increase in tobacco use among women, indicating a shifting trend. The session called for stronger legislation, faster policy action, and strict enforcement to counter the rapid spread of emerging nicotine products. Speakers emphasized that existing laws remain poorly implemented due to procedural delays, weak monitoring, and limited coordination between federal and provincial bodies. The need for clear parental awareness, community engagement, and better recognition of new nicotine products was highlighted as an essential part of early prevention. Officials noted that families and schools often remain unaware of modern products marketed to young people. Technical briefings identified major enforcement gaps and policy loopholes that allow the tobacco industry to expand its reach. Participants noted that companies are increasingly using social media trends, entertainment content, and youth-focused marketing to promote vaping in urban areas. Government representatives reaffirmed ongoing federal efforts to implement the Prohibition of Smoking and Protection of Non-Smokers Health Ordinance 2002 and to tighten regulations where required. Provincial representatives also announced plans to introduce new resolutions to strengthen tobacco control. Education sector officials raised alarms over the rise of nicotine products around private institutions and called for tougher regulatory checks. Regulatory authorities stressed the need for a broader social movement to counter tobacco use nationwide. Closing the event, the Aurat Foundation reiterated its commitment to evidence-based advocacy, cross-sector collaboration, and long-term public awareness initiatives aimed at building a healthier, tobacco-free society.

ISLAMABAD: The State Bank of Pakistan (SBP) Monday cut the policy rate by 100 basic points (bps), bringing it down to 11 per cent.

In a statement, the Central Bank (SBP) announced that the Monetary Policy Committee (MPC) decided to reduce the interest rate, citing the lower-than-anticipated April inflation — largely the result of falling prices in perishable foods and energy.

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April recorded a modest inflation rate of just 0.3%, mainly due to the high comparison base from the previous year.

This decline was driven by reduced prices of essential food items like wheat, onions, potatoes, and some pulses, along with lower electricity and fuel costs.

Since these goods hold considerable weight in the Consumer Price Index (CPI), even slight changes in their prices can significantly impact overall inflation.

The MPC reviewed the overall financial and fiscal situation, major economic indicators, data of different sectors, and major developments taken place since the announcement of the previous monetary policy.

The MPC, in its previous meeting on March 10, 2025, adopted a cautious approach and kept the policy rate unchanged at 12 percent, taking inflation expectations and the position of the external account into consideration.

The committee had noted the improvement in economic indicators, including current account balance, inflation, external inflows, monetary management, and foreign reserves, but it was cautious about inching up of inflation in subsequent months as well as uncertainties in the global economic policy environment.

Considering the developments and evolving risks, the MPC had also stressed the need for continuing fiscal consolidation to ensure price stability, which is essential for sustainable economic growth.

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