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Pakistan Interest Rate Spread

Interest rate spread (lending rate minus deposit rate)  FR.INR.LNDP

Pakistan's interest rate spread was 2.91% in 2021, ranked 19th globally. This represents a 11.2% decrease from 2020. Data from World Bank, covering 2004–2021.

2.91% −0.37pp (-11.2%)
Year 2021 Rank #19 Global Peak 6.81% (2006) Source World Bank

Pakistan Interest Rate Spread (2004–2021)

Overview

Pakistan's interest rate spread stood at 2.91% in 2021, a decline of +0.37pp from 2020. Pakistan ranked 19th globally.

Pakistan's interest rate spread, as measured by the World Bank, has shown a declining trend over the past 18 years, from an all-time peak of 6.81% in 2006 to a trough of 2.91% in 2021. This significant reduction reflects Pakistan's efforts to stabilize its economy and attract foreign investment. Compared to its peer countries, Pakistan's interest rate spread is relatively high, with China boasting a lower spread of 2.85% in 2021. The decline in interest rate spread in Pakistan is a positive indicator of the country's economic growth prospects. However, the trajectory of this trend is sensitive to external factors, such as changes in global interest rates and economic policies. A further decline in interest rate spread in Pakistan would likely require sustained economic growth, a stable exchange rate, and continued efforts to reduce inflationary pressures.

Data & projection

Year Interest Rate Spread YoY change Rank
2021 2.91% −0.37pp #19
2020 3.28% +0.18pp #25
2019 3.10% −0.20pp #26
2018 3.31% −0.43pp #29
2017 3.73% −0.19pp #39
2016 3.92% −0.26pp #41
2015 4.18% −0.28pp #47
2014 4.47% −0.35pp #46
2013 4.81% −0.73pp #49
2012 5.54% −0.65pp #59
2011 6.19% +0.30pp #66
2010 5.90% +0.04pp #60
2009 5.86% −0.16pp #59
2008 6.02% −0.44pp #61
2007 6.46% −0.35pp #66
Show all years (2004-2021)

Detected Pattern

Export Boom Cycle
Current account surplus with strong export growth (>15% YoY), reserve accumulation, and moderate GDP growth. Typical of commodity exporters during price surges.
Reserves YoY +34.1% GDP growth 3.0% C/A balance 0.1%
Occurred 768 times, 546 successful
Reserves YoY
+25.6%
GDP growth
4.0%
C/A balance
14.5%
Reserves YoY
+14.6%
GDP growth
3.7%
C/A balance
2.9%
Reserves YoY
+12.8%
GDP growth
43.8%
C/A balance
16.4%
Reserves YoY
+12.6%
GDP growth
6.0%
C/A balance
0.5%
Reserves YoY
+38.3%
GDP growth
5.0%
C/A balance
1.2%
Reserves YoY
+18.0%
GDP growth
2.9%
C/A balance
3.9%

Analysis

Pakistan matched the Export Boom Cycle pattern in 2024. Historically, 71% of countries showing this pattern (546 out of 768) saw interest rate spread improve within 24 months. View full analysis →

Frequently Asked Questions

What is Pakistan's interest rate spread?▾

Pakistan's interest rate spread was 2.91% in 2021. Ranked 19th globally. This represents a 11.2% decrease from the previous year.

What was the highest interest rate spread in Pakistan?▾

Pakistan's interest rate spread peaked at 6.81% in 2006.

What was the lowest interest rate spread in Pakistan?▾

The lowest interest rate spread in Pakistan was 2.91% in 2021.

How does Pakistan rank in interest rate spread?▾

Pakistan ranks 19th globally in interest rate spread as of 2021.

What is the World Bank indicator code for interest rate spread?▾

The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.

What is the interest rate spread of Pakistan in 2021?▾

The interest rate spread of Pakistan in 2021 was 2.91%. This ranks 19th in the world.

Cite this page

APA
Pakistan Interest Rate Spread. HistorySaid. Retrieved October 29, 2026, from https://historysaid.com/pakistan/interest-rate-spread/
BibTeX
@misc{historysaid_pakistan_interest-rate-spread, title = {Pakistan Interest Rate Spread}, url = {https://historysaid.com/pakistan/interest-rate-spread/}, publisher = {HistorySaid}, year = {2026} }
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