strategic transition or operational disruption?
In Pakistan, tight monetary policy coincides with rising inflation due to supply shocks, undermining the interest rate signal Market analysts warn that IMF-related measures in the upcoming 2026 budget—especially new taxes and adjustments to energy prices—could lead to a resurgence in inflation. PHOTO: FILE MICHIGAN/KARACHI: In August 2009, the State Bank of Pakistan (SBP) formally changed its monetary policy framework from monetary targeting to an interest rate-based monetary policy framework, known as the inflation-targeting-lite regime, by introducing the interest rate corridor (IRC). In international systems, the adoption of the IRC would be a transitional move to the implementation of a







