The SBP policy rate stayed at 11.5% after the State Bank of Pakistan’s Monetary Policy Committee (MPC) met on July 27, 2026, and for Pakistan’s fast-growing digital lending and fintech sector, the wait for cheaper credit goes on. This was the second meeting in a row where the central bank chose to hold, citing rising risks in the Middle East and concerns over global oil prices. The next MPC meeting is set for September 14, 2026, and that is now the earliest date any rate relief could arrive.
What the SBP Policy Rate Decision Actually Said
The SBP’s MPC, in its first meeting of fiscal year 2026-27, kept the policy rate unchanged at 11.5%. The committee said the macroeconomic outlook has improved since its previous meeting, but remains at risk from heightened tensions in the Middle East. SBP Governor Jameel Ahmad said CPI inflation is expected to decline in July, and the central bank expects inflation to settle near the upper limit of its 5, 7% target range by the end of the fiscal year.
On July 27, 2026, the central bank announced it was keeping its benchmark interest rate unchanged at 11.5%, the second consecutive meeting where the rate has been held steady. The next MPC meeting is scheduled for September 14, 2026.
To understand how far the rate has already fallen, some context helps. Pakistan’s policy rate peaked at around 22% in 2023. After a long easing cycle, it came down to 10.5% in December 2025. Then, in April 2026, it was raised by 100 basis points to its current 11.5%. So while borrowing is still cheaper than it was three years ago, rates have moved in the wrong direction for borrowers over the last few months.
Why Fintechs and Digital Lenders Were Watching Closely
JazzCash’s focus in 2026 is on three things: lending at scale, government services, and investment products. The platform enabled the issuance of 202,000 average loans per day in Q1 2026, extending formal credit to individuals and SMEs, including women-led businesses. At that kind of volume, even a small shift in the cost of funds flows directly into what borrowers pay.
Easypaisa took a different path. The SBP awarded its first Digital Retail Bank (DRB) licence to Easypaisa Digital Bank, authorising it to launch full banking operations aimed at promoting financial inclusion. As a licensed bank, Easypaisa’s lending cost is now tied more directly to the SBP policy rate than it was as a microfinance operator.
JazzCash’s ReadyCash micro-lending service is available to eligible wallet users, with loan amounts from Rs. 500 to Rs. 50,000 and a weekly service charge of approximately 0.4% of the outstanding balance, equivalent to roughly 20% annually. That rate is already steep for daily-wage earners and small shopkeepers. A cut in the SBP policy rate does not automatically lower this overnight, but it reduces the cost of funds for the platforms that offer these loans, which can eventually be passed on.
The SBP Policy Rate and BNPL Apps
Pakistan’s Buy Now Pay Later (BNPL) space has grown quietly but steadily. QisstPay offers BNPL instalment payments at checkout. Abhi provides earned wage access, letting employees draw already-earned salary early. These products compete on price. When the SBP policy rate falls, the cost of deploying short-term credit drops too, and BNPL providers can offer better terms or extend to riskier (read: lower-income) customers while staying profitable.
Pakistan’s small businesses often struggle to access formal credit despite their importance to employment. Digital payments, transaction histories, and alternative data could allow lenders to better assess risk, and fintech firms offering working capital, invoice financing, embedded lending, and merchant tools could help narrow one of the country’s most persistent financing gaps. All of this depends partly on how much it costs to lend in the first place.
What This Means for Pakistan’s Unbanked Millions
Approximately 100 million Pakistanis remain unbanked, representing over 50% of the adult population, according to the World Bank’s Global Findex Database. Digital wallets and lending apps are one of the most realistic ways to bring these people into the formal financial system. But affordability is the bottleneck.
The microfinance sector’s high operating costs mean interest rates on loans are still very high. The Pakistan Microfinance Network estimated the average lending rate at 38%, and similar rates persist today. Digital lenders operate at lower cost than branch-based banks, so they have room to undercut those rates. But a lower SBP policy rate makes it even easier for them to do so, especially for first-time borrowers with no credit history.
Pakistan’s roughly 450 fintech companies have collectively raised around $391 million in venture capital to date. That investment bets heavily on the idea that cheaper credit, more accessible through a phone, will eventually reach those 100 million unbanked adults. Every quarter the SBP policy rate stays elevated, that journey takes a little longer.
For context on how Pakistan’s banking regulator is thinking about fintech at the structural level, it is worth reading about the SBP’s new startup definition and how it gives founders a seat at the banking table, a move that shapes how digital lenders are classified and regulated. And if you want to understand the payments infrastructure that sits underneath all these apps, NBP’s nationwide Raast P2M rollout is a key piece of the puzzle.
What Comes Next
Looking beyond the July meeting, respondents in a Topline Securities survey were divided over the outlook for the rest of the year. About 49% expect the policy rate to remain at 11.5% through December 2026, while 46% foresee further easing. Topline Research itself expects the policy rate to fall below 11.5% before the end of the year.
If the Middle East situation stabilises and oil prices ease, the September 14 MPC meeting could deliver the cut that digital lenders and their customers have been waiting for. Until then, fintech platforms are competing on features, speed, and user experience, not yet on a meaningfully lower cost of credit.
Frequently Asked Questions
What is the SBP policy rate right now?
The SBP policy rate is currently 11.5%. The MPC held it at this level on July 27, 2026. It has been unchanged for two consecutive meetings. The next review is on September 14, 2026.
How does the SBP policy rate affect JazzCash and Easypaisa loans?
Both platforms borrow funds at rates linked to the benchmark rate. When the SBP policy rate is high, their cost of funds is higher, which makes it harder to offer cheap loans. A rate cut would lower their funding costs, potentially allowing them to reduce charges on products like JazzCash ReadyCash or Easypaisa’s credit offerings.
Will BNPL in Pakistan get cheaper if the SBP cuts rates?
A rate cut helps, but it is not the only factor. BNPL providers also consider default risk and operating costs. What a lower SBP policy rate does is reduce the floor, making it possible to serve lower-income customers profitably when it was not before.
When is the next SBP MPC meeting?
The next MPC meeting is scheduled for September 14, 2026. That is the earliest point at which the SBP could cut the policy rate, assuming inflation and geopolitical risks improve by then.
