SBP Governor Projects Pakistan’s Current Account Deficit Below 1% of GDP

ISLAMABAD: The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, announced that the country’s current account deficit is projected to remain between 0% and 1% of gross domestic product (GDP) as economic fundamentals and external stability show signs of improvement.

Speaking at the annual convocation of the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), Ahmad emphasized the positive trajectory of Pakistan’s economy, attributing the expected stability to ongoing reforms and prudent fiscal measures. He stated, “The current account deficit is a reflection of our improving economic fundamentals, which are crucial for sustainable growth.”

This projection is significant for Pakistan, as a lower current account deficit can enhance investor confidence, stabilize the currency, and foster economic growth. It may also alleviate concerns regarding foreign exchange reserves, which have been under pressure in recent years.

Looking ahead, the SBP plans to continue monitoring economic indicators closely and will hold discussions with key stakeholders to ensure that the positive trends are maintained. The next monetary policy meeting is anticipated to provide further insights into the central bank’s strategies for sustaining economic stability.