Karachi: Soneri Bank Limited has released its Directors' Review Report for the half-yearly period ending June 30, 2026. The report, dated August 28, 2026, outlines the bank's financial performance and provides insights into Pakistan's economic landscape during the first half of the year.
Pakistan's economy continued its trajectory of strengthening, building on macroeconomic stabilization achieved in the previous year. Economic activities were supported by recovering industrial production, enhanced private sector credit uptake, stable external sector conditions, and continued economic reforms. However, geopolitical tensions in the Middle East during the second quarter introduced volatility in global energy markets, temporarily increasing inflationary pressures. Despite these challenges, macroeconomic indicators remained stronger than in preceding years.
Inflation emerged as a primary macroeconomic challenge, with the rate climbing from 7.3% in March 2026 to 11.7% in May, before slightly easing to 11.1% in June. The State Bank of Pakistan expects a gradual moderation in inflationary pressures as global fuel prices ease and favorable base effects re-emerge.
The State Bank of Pakistan maintained a cautious monetary policy stance, increasing the policy rate from 10.5% to 11.5% in April 2026 to address rising inflation. The policy rate was subsequently held steady in June and July, deemed prudent to guide inflation towards the medium-term target of 5 to 7%.
Pakistan's external sector showed resilience, with foreign exchange reserves exceeding US$18.4 billion by the end of June 2026, bolstered by record-high workers' remittances and strong ICT exports. Fiscal indicators improved as well, with higher revenue collection and disciplined expenditure management playing key roles.
The financial markets, including the Pakistan Stock Exchange, demonstrated robust performance. According to information available from the Pakistan Stock Exchange (PSX), the market reached historic highs in 2026, recovering swiftly from temporary corrections prompted by geopolitical uncertainties.
Economic activity showed signs of recovery, with large-scale manufacturing seeing robust growth. The agriculture sector remained stable, while the services sector expanded, supported by growth in information and communication services.
Overall, the first half of 2026 showed increasing resilience and strengthening macroeconomic fundamentals, as detailed in Soneri Bank Limited's report. This resilience was reflected across multiple sectors, contributing to an optimistic outlook for the remainder of the year.