KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad on Monday said that Pakistan’s external payment obligations for the year stand at $26 billion, of which $16 billion are expected to be rolled over or refinanced, while $8 billion from the remaining $10 billion have already been repaid.
Speaking at the opening ceremony of Pakistan Literacy Week, the governor provided a broad overview of the country’s economic position, highlighting improving external indicators, fiscal discipline, and financial literacy initiatives.
Ahmad said foreign exchange reserves are projected to exceed $14 billion by June 2025, while the current account is expected to register a substantial surplus — a marked reversal from the $1.7 billion deficit last year.
He also revealed that remittances for March 2025 are expected to clock in at $4.1 billion.
Reviewing the country’s recent economic turbulence, the governor noted that in 2022, Pakistan experienced rapid inflation, plummeting reserves that fell to import coverage for just two weeks, and a 50% depreciation in the exchange rate. A wide divergence had also emerged between interbank and open market exchange rates.
To counter these challenges, the SBP implemented strict policy measures, including aggressive interest rate hikes and import restrictions. These, Ahmad said, contributed to bringing inflation down to 0.7% in March 2025. However, he cautioned that inflation is likely to increase again from next month.
“The exchange rate has stabilised, the gap between interbank and open market rates has narrowed, and the current account remains in surplus despite all odds,” he said.
Regarding the growth outlook, Ahmad projected GDP growth between 2.5% and 3.5% for FY25, adding that growth could reach 4.2% if the agriculture sector performs strongly.
The governor reiterated SBP’s focus on financial inclusion and literacy, stating that the central bank aims to increase the financial inclusion rate from 64% to 75% by 2028. He also expressed high confidence in his institution, saying, “I trust my team up to 98%.”
Various activities will be held nationwide as part of Pakistan Literacy Week to promote financial awareness and inclusion.
