{
  "id": 15188612,
  "title": "Pakistan’s economy in better position to withstand external shocks: SBP governor",
  "url": "https://urgent.news/2026/10/17/pakistans-economy-in-better-position-to-withstand-external-shocks-sbp",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-17T12:04:52.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40444677/pakistans-economy-in-better-position-to-withstand-external-shocks-sbp-governor"
  },
  "original_language": "en",
  "account": "Governor Jameel Ahmad of the State Bank of Pakistan (SBP) has informed global investors that Pakistan's economy is in a stronger position to handle external shocks, according to a recent meeting with foreign investors in Bangkok, Thailand. This assessment comes as Pakistan's macroeconomic conditions have shown notable improvement, with foreign exchange reserves rising to $21.5 billion and inflation decreasing significantly. Ahmad credited this progress to persistent macroeconomic policies and structural reforms. The governor's remarks were made during a series of meetings with leaders from major international financial institutions, including JP Morgan, Citibank, and Deutsche Bank. Ahmad also addressed bilateral and multilateral partners, central banks, and credit rating agencies. Despite a major oil price shock in the previous fiscal year, inflation has fallen sharply, nearing its target range in the most recent fiscal year. Economic growth, which contracted in the previous year, has shown a steady recovery, reaching 3.7% in the latest fiscal year, with projections of further growth between 3.5% and 4.5% in the following year. Pakistan's external reserves, which were below $3 billion in 2023, have rebounded to $21.5 billion as of October 2026, while forward liabilities have been reduced to less than $1 billion. This improvement is attributed to the central bank's foreign exchange purchases, facilitated by a nearly balanced current account in the latest fiscal year. Regulatory reforms aimed at enhancing liquidity in the interbank foreign exchange market have also contributed to this positive trend. Ahmad expects continued foreign exchange purchases, with the current account deficit projected to remain below 1% of GDP in the coming fiscal year. Pakistan's fiscal position has strengthened, with a third consecutive annual primary fiscal surplus in the latest year, driving down the public debt-to-GDP ratio. Ahmad stated that a staff-level agreement with the International Monetary Fund on the Extended Fund Facility and Resilience and Sustainability Facility has been reached, contributing to investor confidence and upgrades in Pakistan's sovereign credit ratings. Despite ongoing geopolitical challenges, Ahmad affirmed that Pakistan is in a better position to withstand current external stresses compared to past periods of economic strain. The central bank remains committed to maintaining macroeconomic stability, bolstering external buffers, and advancing structural reforms to ensure sustainable economic growth.",
  "summary": "State Bank of Pakistan (SBP) Governor Jameel Ahmad has told global investors that Pakistan’s macroeconomic conditions have improved, with foreign exchange reserves rising to $21.5 billion and inflation declining sharply, strengthening the economy’s ability to withstand external shocks. Addressing high-level meetings with foreign investors on the sidelines of the IMF-World Bank Annual Meetings in…",
  "key_points": [
    "Pakistan's economy strengthened to handle external shocks, says SBP Governor Jameel Ahmad",
    "Foreign exchange reserves rose to $21.5 billion, inflation decreased significantly",
    "Economic growth recovered to 3.7% in latest fiscal year, projected to grow 3.5%-4.5%"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}