SBP Governor Highlights Economic Stability in Meetings with Global Institutions

State Bank of Pakistan (SBP) Governor Jameel Ahmad communicated the nation’s “enhanced macroeconomic stability” and its future prospects during significant discussions with top executives from international financial and investment organizations, according to an official SBP statement released on Saturday.

The institutions involved encompassed JP Morgan, Standard Chartered, Deutsche, Jefferies, and prominent credit rating agencies. These interactions occurred on the sidelines of the IMF–World Bank Spring Meetings held in Washington, D.C.

“Governor Ahmad updated participants on the evident advancements Pakistan has achieved in stabilizing its economic condition. He underscored that a well-considered monetary policy, along with continuous fiscal consolidation efforts, has fostered macroeconomic stability within the nation,” the SBP statement detailed.

Ahmad pointed out that the primary inflation rate had decreased substantially over the previous two years, achieving a multi-decade low of 0.7% in March 2025.

“Furthermore, core inflation has also decreased significantly from levels above 22% to single digits and is anticipated to decrease further in the upcoming months. Looking ahead, the primary inflation rate is projected to stabilize within the intended range of 5 to 7%,” he stated.

Concerning the external account, the SBP governor conveyed that Pakistan’s foreign exchange (FX) reserves demonstrated a “significant qualitative and quantitative enhancement”.

Pakistan saw a record $4.1 billion in remittances in March, according to the SBP governor.

“The SBP’s FX reserves have more than tripled since reaching their lowest point in February 2023, while its forward liabilities have also been substantially reduced.”

Ahmad expressed the view that, unlike previous instances of reserve accumulation, the ongoing growth in external reserves was not attributable to further accumulation of external debt.

“In fact, Pakistan’s public sector external debt, both in absolute figures and as a percentage of GDP [gross domestic product], has diminished since June 2022.”

He emphasised that this enhancement mirrored the “SBP’s policy focus on enhancing the economy’s resilience against external pressures, including the prevailing trade-related global instability”.

The SBP governor clarified that the SBP had successfully augmented FX reserves via FX acquisitions amid a surplus in the external current account. He also mentioned that the central bank aimed to increase FX reserves to $14 billion by June 2025.

“Governor SBP highlighted that, as the economic circumstances have stabilized, Pakistan’s GDP growth is steadily recuperating and is projected to reach around 3% during FY25. He noted that these enhancements to the country’s economy have also been acknowledged by international credit rating agencies,” the statement read.

The SBP governor has urged banks to prioritize SME lending.

The SBP governor communicated that policymakers were still focused on preserving macroeconomic stability and executing structural reforms across various sectors of the economy.

He voiced his optimism that, with continued progress on the reform agenda, Pakistan would be able to attain sustainable economic expansion and socioeconomic improvement.