SBP Chief Highlights Economic Resilience Amid Global Challenges

KARACHI: The State Bank of Pakistan (SBP) Governor Jameel Ahmad announced on Wednesday that the country’s economic fundamentals have shown significant improvement despite facing severe global and regional shocks.

Speaking at the annual convocation of the Institute of Cost and Management Accountants of Pakistan, Ahmad acknowledged the ongoing challenges but emphasized that the nation has made considerable progress since 2022. He noted, “Despite significant supply shocks, we have contained the impact on the domestic economy,” highlighting that inflation remains close to the target range for fiscal year 2026.

Ahmad projected that inflation, which has risen recently, is expected to gradually ease towards the mid-year fiscal year 2027 target range of 5-7%, supported by prudent monetary tightening measures. He also reported that the external account remains stable, with the current account deficit anticipated to stay within 0 to 1% of GDP. Real GDP growth is recovering, moving from a contraction in fiscal year 2023 to an expected 3.7% in fiscal year 2026, with further growth anticipated in fiscal year 2027.

These improvements in economic fundamentals and the growing resilience of the economy are being recognized by international credit rating agencies, multilateral partners, and foreign investors, indicating a positive outlook for Pakistan’s economic landscape.