KARACHI, May 5, 2026 – Governor Jameel Ahmad said the State Bank of Pakistan (SBP) is fully prepared to take necessary measures to safeguard financial stability amid risks arising from the ongoing Middle East conflict.
Speaking in the Financial Stability Report 2025 released on Tuesday, the governor said the central bank remains vigilant and ready to respond to evolving economic and financial challenges.
Vigilance Amid Global Uncertainty
Jameel Ahmad noted that while global conditions showed signs of normalization toward the end of 2025, risks from geopolitical tensions and trade uncertainties persist.
According to the International Monetary Fund (IMF), the global economy grew by 3.4%, while inflation declined to 4.1%, down from 5.8% in the previous year.
He added that easing inflation allowed major central banks to relax policy stances, keeping global financial conditions relatively accommodative.
Pakistan’s Economic Stabilization
On the domestic front, the SBP highlighted improvements in key macroeconomic indicators due to coordinated fiscal and monetary policies.
• Inflation returned to the target range of 5–7%
• Foreign exchange reserves strengthened
• Economic growth gradually recovered
• Business confidence remained positive
The central bank attributed these gains to prudent and timely policy measures, alongside government-led fiscal consolidation efforts.
Banking Sector Remains Strong
The SBP emphasized that Pakistan’s banking sector, which accounts for around 80% of the financial system’s assets, remains stable and resilient.
• Strong solvency supported by healthy earnings
• Improved asset quality with controlled non-performing loans
• Adequate liquidity levels
Stress testing conducted by the SBP confirmed that banks are capable of withstanding adverse economic shocks over the next three years.
Digital Growth and Financial Inclusion
The report highlighted significant progress in financial inclusion and digital transformation:
• Financial inclusion increased from 67% to 69%
• Gender gap reduced from 33% to 29%
• Raast expanded to 48 million users
• Transactions reached nearly 2 billion, valued at Rs50 trillion
In addition, inflows through Roshan Digital Accounts crossed $11 billion, reflecting strong engagement from overseas Pakistanis.
Climate Risk and Policy Framework
The SBP also underscored the importance of addressing climate-related risks, introducing frameworks for climate risk management and stress testing for financial institutions.
These initiatives are part of its broader Strategic Vision 2028, aimed at strengthening resilience against environmental and economic shocks.
Cybersecurity and Regulatory Measures
With rapid digital adoption, the central bank acknowledged rising cybersecurity risks and enhanced its monitoring systems.
In collaboration with the Pakistan Banks Association, SBP conducted a nationwide cybersecurity simulation exercise in January 2026 to improve preparedness against cyber threats.