KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad on Monday outlined Pakistan’s improving economic indicators and future goals, stating that the country’s external payment obligations stand at $26 billion — of which $16 billion are expected to be rolled over or refinanced, while $8 billion out of the remaining $10 billion has already been repaid.
Speaking at the inauguration of Pakistan Literacy Week, the governor addressed the nation’s economic outlook, monetary policy, and the importance of financial literacy. Reflecting on the crisis faced in 2022, Ahmad highlighted severe inflation, dwindling foreign reserves — enough for just two weeks of imports — and a 50% depreciation in the exchange rate.
He noted that the SBP responded with tough policy measures, including restrictions on imports and sharp interest rate hikes. These steps, he said, successfully brought inflation down to just 0.7% in March 2025. However, he cautioned that inflation could rise again from next month.
Ahmad pointed out that Pakistan’s current account, which was previously in deficit, is now in surplus — a positive shift attributed to targeted economic policies. The exchange rate has stabilized, and the gap between interbank and open market rates has significantly narrowed.
Looking ahead, the governor projected GDP growth between 2.5% and 3.5% for FY25, with potential to reach 4.2% if the agriculture sector performs strongly. He also expressed high confidence in his team, stating, “I trust my team up to 98%.”
The SBP’s chief reaffirmed a major national target: raising financial inclusion from 64% to 75% by 2028. He added that a range of activities under Literacy Week would promote financial education across the country.
Read more: SBP Holds Interest Rates Amid Inflation Relief, Economists Call for Structural Reforms
Ahmad further noted that Pakistan’s foreign exchange reserves are expected to surpass $14 billion by June 2025, and the current account is projected to post a significant surplus for the year — a turnaround from the $1.7 billion deficit recorded last year. Additionally, remittances for March 2025 are expected to reach $4.1 billion, bolstering the nation’s external account.
Comments are closed, but trackbacks and pingbacks are open.