Real interest rate | Pakistan – yearly data, chart and table

The Real interest year-end rate of Pakistan in 2024 was 13.00%. The end-2023 rate was  22.00%. This is the first year of decline after a period of growth. The lowest real interest rate in Pakistan was recorded in 2017, with a value of  5.75%. The highest rate was in 2023, when it achieved 22.00%. Real Interest Rate ≈ Nominal Interest Rate - Inflation Rate. If the nominal interest rate on a loan is 9%, and inflation is 6%, the real interest rate is 3%. This means the lender effectively gains 3% in purchasing power, while the borrower pays 3% in real terms.