Stability paves way for sustainable growth: SBP chief

Karachi: State Bank of Pakistan Governor Jameel Ahmad emphasized that the nation is transitioning from economic stabilization to sustainable growth, projecting a GDP growth rate of up to 4.5 percent for fiscal year 2027 (FY27). Speaking at an Independence Day flag-hoisting event, Ahmad highlighted the important strides made towards stability during the past year, driven by enhanced fiscal and monetary discipline.

He attributed the economy's expansion of 3.7 percent in FY26 to prudent fiscal and monetary policies. Ahmad anticipates GDP growth to remain between 3.5 and 4.5 percent in FY27. He noted with optimism that the economy's progression toward sustainable growth follows a period of stabilization. The governor also addressed the country's external sector, praising the $41 billion in overseas remittances received in FY26, which are expected to rise to $44 billion in FY27.

This influx, coupled with a low current account deficit, is bolstering foreign exchange reserves, which hit $18.4 billion by the end of FY26. Ahmad anticipates SBP reserves to surpass $21 billion in FY27. Regarding inflation, Ahmad reported an average of 7.1 percent in FY26 and affirmed that the current monetary policy remains suitable to keep inflation within the 5-7 percent medium-term target while sustaining economic activity and job creation.

He also unveiled the successful introduction of PRISM+, a project that aligns Pakistan's payment infrastructure with international standards, enhancing the speed, safety, and efficiency of large-value transactions. Additionally, Ahmad praised the rise in digital payments, with retail digital transactions increasing from approximately 10 billion to 12 billion in FY26.

He underscored the significance of financial inclusion, stressing that SBP is dedicated to ensuring all segments of society have access to formal financial services through initiatives like InvestPak. In terms of financial sectors, Ahmad outlined SBP's ongoing commitments to Islamic banking, green finance, cybersecurity, and financial technology to ensure the Pakistani financial system remains secure, resilient, and future-ready.

He stressed that economic self-reliance, robust institutions, adherence to the rule of law, and national unity are crucial for realizing the true essence of independence. Despite the progress made, Ahmad warned of ongoing challenges that demand continued vigilance, dedication, and determination. He reaffirmed SBP's focus on price stability, policy reforms, and fostering an environment conducive to higher productivity, export growth, and job creation, emphasizing that these objectives are vital for converting economic stability into sustainable development and building a stronger, more prosperous Pakistan.