In the period since the previous Report, the key policy rate was kept at 1%, which is its lowest level in the inflation targeting regime and also 1.25 pp lower than pre-pandemic.
The emergence of the term reflected recognition of the increased importance of entities and activities structured outside the regular banking system that perform bank-like functions.1 The financial sector in Pakistan comprises of Commercial Banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Non-banking Finance Companies (NBFCs) (leasing companies, Investment Banks, Discount Houses, Housing Finance Companies, Venture Capital Companies, Mutual Funds), Modarabas, Stock Exchange and Insurance Companies.