KARACHI: In a candid address during the Members Convocation of the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), Jameel Ahmad, Governor of the State Bank of Pakistan (SBP), stressed the urgent need for unpopular yet necessary measures to bolster the nation’s economy.
Speaking at a local hotel in Karachi as the chief guest, SBP Governor Ahmad praised the government and the SBP for their staunch dedication to addressing macroeconomic challenges, a commitment he credits for the recent significant improvements in Pakistan’s economic landscape.
“A year ago, Pakistan was grappling with severe macroeconomic instability,” Ahmad detailed in his keynote address. “We were combating inflation rates as high as 38 percent, rapidly depleting foreign exchange reserves, a pressured exchange rate, and heightened uncertainty.”
However, Ahmad presented a more optimistic scenario that has unfolded since those challenging times: “Today, we see inflation declining sharply; our reserves have climbed to around US$8 billion despite heavy debt repayments and are expected to soon surpass the US$9 billion mark. Moreover, the current account deficit has significantly narrowed, stabilizing the PKR and reducing uncertainty.”
SBP Governor Ahmad also highlighted the substantial backing Pakistan continues to receive from bilateral and multilateral partners, noting the bullish trends in the stock market reaching new heights.
The improvements, he explained, stemmed from a series of tough but essential decisions. “The State Bank raised the policy rate to 22 percent to mitigate inflation and ease current account pressures. Simultaneously, the government implemented fiscal consolidation measures by trimming non-essential expenditures.”
These decisions, according to Ahmad, are beginning to yield the desired outcomes, illustrating the effectiveness of coordinated policy responses in times of economic distress.
In his address, the Governor emphasized the necessity for innovation and fresh perspectives to tackle long-standing economic issues exacerbated by global challenges like climate change, technological shifts, cybersecurity threats, and financial innovations.
“To navigate these complex challenges, Pakistan needs its new generation of professionals—skilled in economics, finance, and accounting—to step up and craft viable solutions,” Ahmad urged the graduates. He highlighted the critical role of leadership skills in designing and implementing robust policy and regulatory frameworks.
Governor Ahmad concluded his speech by encouraging the new graduates to dedicate themselves to hard work and excellence, aiming to significantly impact Pakistan’s economic trajectory.
The event also saw warm remarks from Mr. Shehzad Ahmed Malik, President of ICMA Pakistan, who welcomed the dignitaries and lauded the SBP team’s efforts in stabilizing the economy. The ceremony concluded with Governor Ahmad awarding degrees to the new Certified Management Accountants, marking their readiness to contribute to the financial and economic sectors of Pakistan.
