Improved external account shows economic resilience: SBP Governor

Karachi - Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, highlighted that the improvement in Pakistan's external account demonstrates the nation's economic resilience and stability. Addressing the launch of the Pasban Remittances Reward Scheme, the Governor noted that the external current account deficit, previously unsustainable, has been reduced to manageable levels.

This has contributed to the accumulation of foreign exchange (FX) buffers, reaching an all-time high of USD 21.4 billion, up from below USD 3.0 billion in February 2023. The Governor emphasized that the strengthening of these FX buffers is primarily driven by market purchases, not external debt accumulation. He commended the role of overseas Pakistanis, particularly the surge in workers' remittances, which rose from USD 21.7 billion in FY19 to a record USD 41.6 billion in FY26.

The Governor stressed that external account stability signifies more than improved figures; it signifies a hard-earned stability and resilience that can help the Pakistan economy transition to sustainable growth. He further acknowledged the government's and SBP's policy interventions, such as tax incentives and targeted financing schemes, designed to promote exports and facilitate workers' remittances.

The SBP has also expanded the Roshan Digital Account scheme to include foreign investors, Pakistani residents with declared foreign assets, and overseas Pakistanis. The Governor praised the success of the Pasban Remittances Reward Scheme, which will further support the formal channels' attractiveness while recognizing the overseas Pakistanis' significant contribution to the nation's economy.