SBP Governor Highlights Economic Progress During IMF-World Bank Meetings

WASHINGTON, D.C.: During meetings held alongside the IMF-World Bank Spring Meetings in Washington, D.C., the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, conveyed optimism regarding Pakistan’s enhanced macroeconomic stability and future prospects to high-ranking officials from prominent global financial and investment firms, which included JP Morgan, Standard Chartered, Deutsche, Jefferies, and key credit rating agencies.

The Governor voiced confidence that Pakistan, by consistently advancing its reform agenda, can realize sustained economic expansion and enhance the socioeconomic well-being of its population.

According to a statement released by the SBP, Jameel Ahmad updated attendees on the significant strides Pakistan has achieved in stabilizing its economy. He emphasized that a well-considered monetary strategy, along with continuous fiscal consolidation measures, has fostered macroeconomic stability within the nation.

Economic Growth Tied to Structural Overhauls

He emphasized the considerable decrease in headline inflation over the last two years, hitting a multi-decade nadir of 0.7% in March 2025. Furthermore, core inflation has markedly diminished from above 22% to single digits and is anticipated to decline further in the near future. Looking ahead, headline inflation is projected to stabilize within the target range of 5 to 7 percent, he noted.

Regarding the external account, the Governor of the SBP stated that Pakistan’s foreign exchange reserves have seen significant qualitative and quantitative gains. The SBP’s FX reserves have more than tripled since reaching their lowest point in February 2023, while its forward liabilities have also decreased considerably.

Ahmad pointed out that, in contrast to earlier instances of reserve accumulation, the current increase in external reserves is not attributable to increased external debt. In fact, Pakistan’s public sector external debt, both in absolute terms and as a proportion of GDP, has decreased since June 2022.

The Governor underscored that these enhancements demonstrate SBP’s strategic emphasis on strengthening the economy’s capacity to withstand external disturbances, including the ongoing global trade uncertainty. He clarified that the SBP has augmented these FX reserves through FX purchases amidst an external current account surplus. He also mentioned the SBP’s goal to elevate FX reserves to $14 billion by June 2025.

The Governor noted that as economic circumstances have become more stable, Pakistan’s GDP growth is progressively rebounding and is predicted to reach approximately 3% during FY25. He also highlighted that enhancements in the country’s economic landscape have been acknowledged by international credit rating organizations. The Governor emphasized that policymakers are still focused on maintaining macroeconomic stability and implementing structural changes across various economic sectors.