State Bank Governor Jameel Ahmad highlights Pakistan’s macroeconomic recovery, declining inflationary pressures and the importance of fiscal discipline and long-term policymaking.
KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has stressed that decisive, evidence-based policies and fiscal discipline are essential for sustaining Pakistan’s economic stability and ensuring long-term growth.
Addressing the annual convocation of the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), the governor said the country had made significant progress in strengthening its economic fundamentals since 2022, despite severe global and regional shocks.
Ahmad said inflation remained close to the central bank’s target range in fiscal year 2026 (FY26). Although inflation has increased since then, it is projected to gradually ease towards the target range, supported by prudent monetary policy.
He added that Pakistan’s external account remained stable, with the current account deficit expected to stay between zero and one per cent of gross domestic product (GDP).
Real GDP growth recovered from a contraction in FY23 to 3.7 per cent in FY26, with further improvement expected in the current fiscal year, he said. These developments have also attracted recognition from international credit rating agencies, multilateral partners and foreign investors.
Reflecting on policy adjustments during FY22 and FY23, the SBP governor said timely action, fiscal discipline and forward-looking policymaking had helped avert a deeper external financing and debt crisis.
He explained that raising the policy rate and maintaining it at an elevated level for almost a year, alongside temporary measures to manage non-debt foreign exchange outflows, had been necessary to restore macroeconomic stability.
Maintaining a positive forward-looking real policy rate had helped reduce inflation from above 30 per cent towards the medium-term target range, he said. Meanwhile, risk-based supervision had strengthened the identification of financial stability risks, while financial sector indicators improved despite elevated interest rates.
Addressing graduates, Ahmad urged them to base their decisions on evidence, uphold professional ethics and contribute to Pakistan’s sustainable and inclusive development.
He also highlighted the accounting and finance profession’s role in strengthening institutions, improving accountability, promoting sound governance and ensuring the responsible use of public resources.
Congratulating the graduating students, the governor expressed confidence that their professional skills, dedication and commitment to excellence would contribute to Pakistan’s future economic development.