Middle East & Central Asia News
LAST UPDATE: June 16, 2025
Pakistan’s central bank holds key rate at 11%, as expected
Pakistan maintained its policy rate at 11% due to inflation control, IMF obligations, and external pressures from Middle East developments.
Insight
The cautious stance reflects trade-offs between macroeconomic stability and growth, with geopolitical and currency risks at the forefront of policy decisions.
Xi Pushes to Deepen Central Asia Influence With Kazakh Visit
President Xi’s trip focused on cementing trade, energy, and geopolitical ties with Kazakhstan during the G7 summit period.
Insight
The move highlights China’s growing strategic ambitions in Central Asia and efforts to shape regional infrastructure, energy, and trade ahead of Western influence.
Pakistan’s central bank holds key rate at 11%, as expected
The State Bank of Pakistan kept its benchmark interest rate unchanged at 11% to support economic stability, citing controlled inflation and the need for policy consistency amid geopolitical tensions and IMF requirements.
Insight
This cautious stance reflects Pakistan’s balancing act: containing inflation while maintaining financial support from the IMF and responding to global instability, particularly from Middle East conflicts.
Xi Pushes to Deepen Central Asia Influence With Kazakh Visit
Chinese President Xi Jinping visited Kazakhstan to meet with regional leaders, promote the Belt and Road Initiative, and strengthen ties through energy and infrastructure deals, coinciding with the G7 summit.
Insight
Xi’s timing and outreach underscore China’s strategic focus on Central Asia as a counterbalance to Western influence, highlighting Beijing’s bid to secure energy routes and political alignment in the region.
