SBP Governor Highlights Improving Economic Stability in Meetings with Global Financial Institutions

During discussions with top executives from global financial and investment firms, the State Bank of Pakistan (SBP) Governor Jameel Ahmad underscored the nation’s enhanced macroeconomic stability and positive trajectory, according to an official SBP statement released on Saturday.

The meetings included representatives from JP Morgan, Standard Chartered, Deutsche, Jefferies, and key credit rating organizations. These interactions occurred on the sidelines of the IMF–World Bank Spring Meetings held in Washington, D.C.

The SBP statement noted, “Governor Ahmad briefed participants on the significant strides Pakistan has made in stabilizing its economic landscape. He emphasised that a well-considered monetary policy, coupled with consistent fiscal consolidation efforts, has fostered macroeconomic stability within the country.”

Ahmad pointed out that headline inflation has seen a substantial decrease over the past two years, achieving a multi-decade low of 0.7% in March 2025.

He stated, “Moreover, core inflation has also decreased considerably from above 22% to single digits and is anticipated to decrease further in the upcoming months. Looking ahead, headline inflation is projected to remain stable within the target range of 5 to 7%.”

Regarding the external account, the SBP governor conveyed that Pakistan’s foreign exchange (FX) reserves had experienced a “considerable qualitative and quantitative improvement.”

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

Ahmad expressed his belief that, unlike previous instances of reserve accumulation, the ongoing increase in external buffers was not attributable to additional external debt accumulation.

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

He emphasised that this progress reflected the “SBP’s policy focus on enhancing the economy’s resilience against external shocks, including the current global trade uncertainties.”

The SBP governor elaborated that the central bank had successfully augmented its FX reserves through strategic FX purchases amid a surplus in the external current account. He also mentioned the central bank’s goal to increase FX reserves to $14 billion by June 2025.

The statement further noted, “Governor SBP highlighted that as economic conditions have become more stable, Pakistan’s GDP growth is gradually recovering and is expected to be around 3% during FY25. He also noted that international credit rating agencies have recognised the improvements in the country’s economy.”

The SBP governor conveyed that policymakers remain focused on maintaining macroeconomic stability and implementing structural reforms across various sectors of the economy.

He expressed optimism that with continued advancement on the reform agenda, Pakistan would be able to achieve sustainable economic expansion and socioeconomic progress.