SBP highlights progress towards economic stability
KARACHI: Jameel Ahmad, Governor State Bank of Pakistan (SBP), on Friday said that Pakistan’s economy made important progress towards stability during the past year, supported by prudent fiscal and monetary policies, and greater economic discipline. He said that the country is continuing to move from economic stabilisation towards sustainable growth. He was addressing Independence Day ceremony…
The State Bank of Pakistan (SBP) Governor, Jameel Ahmad, highlighted the nation's progress towards economic stability during a recent speech at the Independence Day ceremony. Ahmad pointed to prudent fiscal and monetary policies, along with greater economic discipline, as key factors driving the country's path towards sustainable growth, rather than merely stabilisation. Speaking at the bank's Karachi headquarters, Ahmad hoisted the national flag to commemorate Pakistan's 79th Independence Day.
Addressing inflation, Ahmad noted that the average price stability during the fiscal year 2025-26 was 7.1 percent, aligning with the SBP's target range of 5-7 percent. He also shared the bank's expectation for economic growth to maintain between 3.5 and 4.5 percent in the upcoming fiscal year 2026-27, reflecting a steady trajectory towards growth following a period of stabilisation.
Turning his attention to the external sector, Ahmad noted the encouraging influx of overseas Pakistani remittances, which surpassed USD 41 billion in the previous year and are projected to reach USD 44 billion in the upcoming fiscal year. This surge in remittances, combined with a low current account deficit, has bolstered foreign exchange reserves, reaching USD 18.4 billion by the end of the last fiscal year. Ahmad anticipates these reserves to surpass USD 21 billion by the end of the current fiscal year 2026-27.
The Governor also commended the SBP's initiatives to strengthen and modernise Pakistan's financial system. This includes the successful implementation of PRISM+, a platform that brings the country's payment infrastructure closer to international standards by enhancing the speed, safety, and efficiency of large-value payments and settlements.
Additionally, Ahmad highlighted the rapid adoption of digital payments, with retail digital transactions rising from approximately 10 billion to 12 billion over the past year, underscoring the transition towards a more transparent and efficient economy.
Emphasising financial inclusion, Ahmad reiterated SBP's dedication to ensuring access to formal financial services for all segments of society. To this end, SBP introduced InvestPak, offering convenient, secure, and transparent investment opportunities to the public. The Governor also underscored the bank's ongoing efforts in promoting Islamic banking, green finance, cybersecurity, and financial technology to fortify Pakistan's financial system against future challenges.
Ahmad stressed the importance of self-reliance, robust institutions, adherence to the rule of law, and national unity in realising the essence of independence. While acknowledging the significant strides made by the SBP over the past year, Ahmad emphasised that challenges persist and require sustained vigilance, commitment, and resolve.
Looking ahead, the Governor pledged SBP's continued focus on price stability, policy reforms, and fostering an environment conducive to productivity growth, export expansion, and job creation to transform economic stability into sustainable development and build a stronger, more prosperous Pakistan. Ahmad expressed gratitude for the unwavering dedication and hard work of SBP officers and employees, crediting their collective efforts for the achievements of the past year.
The ceremony concluded with a reaffirmation of SBP's commitment to driving sustainable economic development, financial stability, and the welfare of the Pakistani people.
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