SBP governor vows focus on stability, reforms and export growth

State Bank of Pakistan Governor Jameel Ahmad pledged the bank's focus on price stability, policy reforms, and fostering an environment conducive to higher productivity, export growth, and job creation during a ceremony marking Pakistan's 79th Independence Day. Speaking at the flag-hoisting event in Karachi, Ahmad highlighted the economy's significant strides towards stability in the past year, driven by prudent fiscal and monetary policies and greater economic discipline.

The governor noted that the average inflation rate for the fiscal year 2025-26 was 7.1 percent, and emphasized that the current monetary policy stance would remain appropriate to maintain inflation within the 5-7 percent medium-term target while allowing for economic activity, investment, and job creation. Prudent fiscal and monetary policies also contributed to economic growth, which was projected to remain between 3.5 and 4.5 percent in fiscal year 2026-27, indicating encouraging progress towards sustainable growth following a period of stabilization.

Ahmad praised the record remittances from overseas Pakistanis, which reached USD 41 billion in fiscal year 2025-26 and are expected to exceed USD 44 billion in fiscal year 2026-27, contributing to improved foreign exchange reserves of USD 18.4 billion by the end of fiscal year 2025-26, with expectations of surpassing USD 21 billion in fiscal year 2026-27.

The governor also detailed the steps SBP took to strengthen and modernize Pakistan's financial system, including the successful launch of PRISM+, which brought the country's payment infrastructure closer to international standards by facilitating faster, safer, and more efficient large-value payments and settlements. Digital payment growth, reflecting greater technology adoption, saw a significant increase in retail digital transactions, rising from around 10 billion to 12 billion in the past year.

Ahmad stressed that economic self-reliance, strong institutions, adherence to the rule of law, and national unity are crucial for realizing the true spirit of independence. He acknowledged that while significant progress has been made, challenges remain and require continued diligence, commitment, and resolve to transform economic stability into sustainable development and lay the foundation for a stronger, more prosperous Pakistan.