WASHINGTON — The Governor of the State Bank of Pakistan (SBP), Mr. Jameel Ahmad, provided an update on Pakistan’s improving macroeconomic outlook during meetings with senior executives from global financial institutions, including JP Morgan, Standard Chartered, Jefferies, Barclays, Citibank, Bank of America Securities, and major credit rating agencies. The meetings took place on the sidelines of the IMF–World Bank Annual Meetings in Washington, D.C., from October 13–18, 2025.
Mr. Ahmad outlined the substantial progress made by Pakistan in stabilizing its economy, emphasizing that a prudent monetary policy and fiscal consolidation efforts have led to macroeconomic stability. He noted that headline inflation had sharply declined to 5.6% in September 2025, down from over 22% in previous years, with core inflation also reducing to under 8%. Despite the recent floods, inflation is expected to stabilize within the target range of 5 to 7 percent in the medium term.
The Governor also highlighted improvements in Pakistan’s external account, with foreign exchange (FX) reserves increasing significantly. The SBP has purchased $20 billion from the interbank market in the last three years to build FX reserves, which have grown fivefold since February 2023. Additionally, Pakistan’s public sector external debt has increased only marginally since June 2022. The SBP is targeting FX reserves of $17.5 billion by June 2026.
Economic growth is recovering, with a 3% growth recorded in FY25. Although the recent floods have slightly moderated the growth outlook for FY26, the real GDP growth is expected to remain higher than FY25 and fall within the range of 3.25% to 4.25%.
Mr. Ahmad also discussed progress under SBP’s Vision 2028, focusing on financial stability and inclusion, particularly for underserved segments like small and medium enterprises and women.
He expressed confidence that Pakistan’s reform agenda, supported by continued engagement with multilateral partners like the IMF and World Bank, would enable sustainable growth and socioeconomic uplift for the country.
