WASHINGTON, D.C.: Governor Jameel Ahmad of the State Bank of Pakistan (SBP) reaffirmed Pakistan’s improving macroeconomic stability and economic outlook during a series of high-level engagements with senior executives from leading global financial and investment institutions, the central bank said on Saturday.
The meetings — held on the sidelines of the IMF–World Bank Spring Meetings — included discussions with executives from JP Morgan, Standard Chartered, Deutsche Bank, Jefferies, and major credit rating agencies.
According to the SBP, Ahmad briefed participants on the tangible progress Pakistan has made in stabilising its economy, attributing the improvement to a prudent monetary policy and sustained fiscal consolidation. These efforts, he said, had strengthened the country’s macroeconomic fundamentals.
Governor Ahmad pointed out that headline inflation had declined sharply over the past two years, reaching a multi-decade low of 0.7% in March 2025. He added that core inflation had also fallen significantly — from above 22% to single digits — and was expected to moderate further, helping headline inflation stabilise within the target range of 5 to 7% going forward.
On the external front, Ahmad highlighted substantial improvements in Pakistan’s foreign exchange (FX) reserves, noting that SBP’s FX reserves had more than tripled since bottoming out in February 2023, alongside a sharp reduction in forward liabilities.
Unlike previous episodes, the current reserve buildup was not driven by fresh external borrowing, he emphasized. Instead, Pakistan’s public sector external debt, both in absolute terms and as a share of GDP, had declined since June 2022.
He credited the buildup to the SBP’s strategy of FX purchases amidst a surplus in the external current account, adding that the central bank was targeting to boost reserves to $14 billion by June 2025.
Ahmad told participants that as economic conditions stabilise, GDP growth is projected to recover to around 3% during FY25. He noted that international credit rating agencies had also recognized Pakistan’s recent economic improvements.
The SBP governor stressed that macroeconomic stability would remain a top priority, alongside structural reforms aimed at promoting sustainable growth and socioeconomic uplift.
He concluded on a positive note, expressing confidence that continued progress on the reform agenda would enable Pakistan to achieve long-term, sustainable economic growth.
