ISLAMABAD: Governor State Bank of Pakistan (SBP) Jameel Ahmad said on Monday that Pakistan’s economy has emerged from a difficult period and is now moving toward stability and growth.
He was speaking at the launch of the Women Entrepreneurs Finance Code, organized by SBP and the Asian Development Bank (ADB) at a local hotel.
The SBP governor said the country must avoid repeating past mistakes and focus on ensuring economic stability. He said the central bank and the government are committed to transitioning from recent economic stabilization to medium-term transformation.
He cited a cautious monetary policy, a fundamentals-aligned exchange rate, and fiscal consolidation as part of this approach. He said these steps are helping support macroeconomic stability, improve debt dynamics, and build external and fiscal buffers.
Jameel Ahmad said headline inflation had fallen to 4.5 percent in FY2025, the lowest in nine years. He added that with a coordinated mix of monetary and fiscal policy, inflation is expected to remain within the 5 to 7 percent target range.
He said the foreign exchange market remains stable, supported by strong external performance and a quality build-up of reserves. SBP reserves are now nearly five times higher than at the beginning of 2023.
He said the current account balance remains favorable, supported by strong remittances and resilient exports, even as import volumes and values increase with the recovery in economic activity. He said fiscal policy has supported the monetary tightening cycle, with a second consecutive primary surplus recorded in FY2025.
He said tax and non-tax revenues had grown significantly, while overall expenditures remained contained. The government is targeting a higher primary surplus for FY2026.
Ahmad said economic growth is showing gradual and consistent recovery and described the current policy mix as supportive of long-term activity rather than short-term, unsustainable gains. He said growth must be inclusive and sustainable and emphasized the importance of supporting women entrepreneurs.
He said the SBP supports women-led micro, small, and medium enterprises (WMSMEs) to help build a more inclusive financial system.
He acknowledged ADB’s role in supporting the SBP in adopting and implementing the finance code and thanked the bank for its continued partnership. Deputy Governor SBP Saleemullah said the central bank had taken several steps to promote women’s financial inclusion, including the National Financial Inclusion Strategy and the Banking on Equality Policy to integrate gender considerations into banking practices.
Christine Engstrom, Senior Director of Finance at ADB, and Wendy Teleki, Head of the Women Entrepreneurs Finance Initiative at the World Bank, welcomed SBP’s decision to join the code as a global signatory. The launch event included two panel discussions featuring policymakers, business leaders, civil society members, and entrepreneurs who discussed barriers and strategies for advancing women’s entrepreneurship in Pakistan.
National and international participants at the event expressed support for women’s economic empowerment in the country.
