Economy Now Strong, Inflation Down: SBP Governor
Pakistan’s economy has become more resilient to domestic and external shocks thanks to prudent policies and reforms, State Bank of … Read More The post Economy Now Strong, Inflation Down: SBP Governor appeared first on ProPakistani .
State Bank of Pakistan Governor Jameel Ahmad conveyed a message of economic resilience to foreign investors during a meeting at the IMF-World Bank Annual Meetings in Bangkok from October 12 to 17. The governor highlighted that inflation has significantly decreased from its peak levels in FY23 to almost the target range in FY26, even in the face of a major oil price shock.
Ahmad reported that real GDP growth accelerated to 3.7 percent in FY26 and is projected to range between 3.5-4.5 percent in FY27. The Central Bank's official reserves expanded from under $3 billion in February 2023 to $21.5 billion by October 9, 2026. Simultaneously, forward liabilities declined from over $5.7 billion to below $1 billion, primarily due to the State Bank's own foreign exchange purchases, with external debt rising only marginally.
He further stated that the current account deficit is projected to remain within 0-1 percent of GDP in FY27, while the primary fiscal balance has achieved three consecutive annual surpluses in FY26. The governor also discussed the staff-level agreement with the IMF on the Economic Policy Framework (EPF) and the Supplementary Financing Facility (SFF) reviews, emphasizing that these reforms have enhanced investor confidence and resulted in sovereign credit rating upgrades.
Written by urgent.news from ProPakistani's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
