Pakistan likely to keep tight monetary policy amid rising inflation pressures

Financial commentators predict that the State Bank of Pakistan will not ease monetary policy, choosing instead to sustain a tight stance as inflation remains in double-digit territory. September's consumer price index showed inflation above ten percent, signaling that businesses and households will continue to feel the strain. The country has been content with modest growth rates of roughly three to three-point-seven percent, which have not translated into meaningful job creation for the 44 percent of citizens living in poverty.

Industry voices, including a textile manufacturer and a former Bangladesh textile executive, stress that high energy prices and weak investment are undermining the sector. They call for a broader economic strategy to revive domestic investment and improve competitiveness. Meanwhile, the government has raised yields on short-term Treasury bills, hinting at a possible policy rate adjustment at the upcoming monetary policy meeting.