KARACHI: The Governor of the State Bank of Pakistan, Jameel Ahmad, has said that Pakistan’s key macroeconomic indicators have shown faster-than-expected improvement at the start of the current fiscal year, supported by a prudent combination of monetary and fiscal policies.
The governor noted that inflation has stabilised and external sector conditions have strengthened significantly. However, he cautioned that the ongoing conflict in the Middle East has introduced new risks and heightened uncertainty for the global and domestic economic outlook.
In this regard, Ahmad held discussions with senior representatives of major international institutions, including JP Morgan, Barclays, Citibank, Jefferies, and Franklin Templeton, as well as global credit rating agencies such as Fitch Ratings, Moody’s, and S&P Global.
He informed participants that Pakistan had made notable progress in stabilising its economy prior to the recent geopolitical tensions. During the first nine months of the fiscal year, inflation averaged 5.7 percent, while the current account remained in surplus.
The country’s foreign exchange reserves rose to $16.4 billion, with projections to reach $18 billion by June 2026, supported by continued inflows and central bank interventions.
The governor mentioned that real GDP growth reached 3.8 percent in the first half of FY26, compared to 1.8 percent in the same period last year, reflecting a gradual and broad-based economic recovery.
He added that Pakistan is now better positioned to absorb external shocks compared to previous crises, including the economic disruptions following the Russia-Ukraine conflict.
In this sense, Ahmad reaffirmed the central bank’s commitment to maintaining price stability through cautious monetary policy. He noted that the government has complemented these efforts by maintaining primary fiscal surpluses and introducing targeted subsidies alongside austerity measures.
The governor described it as an independent endorsement of Pakistan’s reform agenda.
He also mentioned the success of the Roshan Digital Account initiative, with inflows exceeding $12.4 billion across more than 917,000 accounts, further strengthening Pakistan’s integration into global financial markets.
