Jameel Ahmad says lower inflation, stronger reserves and rising remittances signal shift towards sustainable economic growth
KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has highlighted significant progress in Pakistan’s economy over the past year, saying prudent fiscal and monetary policies and greater economic discipline have helped the country move from stabilisation towards sustainable growth.
Speaking at a flag-hoisting ceremony at the SBP Karachi office on Friday to mark Pakistan’s 79th Independence Day, Governor Ahmad said average inflation declined to 7.1% in FY2025-26.
He said the central bank considers the current monetary policy stance appropriate for keeping inflation within its 5-7% medium-term target, while also providing room for economic activity, investment and job creation.
Pakistan GDP growth reaches 3.7%
Governor Ahmad said Pakistan’s economic growth reached 3.7% in FY26, supported by prudent fiscal and monetary policies.
He projected economic growth of between 3.5% and 4.5% in FY27, describing the outlook as an encouraging indication that the economy is moving towards sustainable growth following a period of stabilisation.
The governor said maintaining economic discipline and continuing structural reforms would remain essential to consolidating these gains.
Remittances cross $41 billion
Highlighting improvements in the external sector, Ahmad said overseas Pakistanis had demonstrated continued confidence in the country’s economy through record remittances.
Remittances exceeded $41 billion in FY26 and are expected to reach $44 billion in FY27, he said.
The increase in remittances, combined with a low current account deficit, has helped strengthen Pakistan’s foreign exchange reserves.
According to the governor, reserves reached $18.4 billion at the end of FY26 and are expected to exceed $21 billion during FY27.
SBP expands digital payments
Governor Ahmad also highlighted the State Bank’s efforts to modernise Pakistan’s financial and payments infrastructure.
He said the successful launch of PRISM+ had brought the country’s payment infrastructure closer to international standards by making large-value payments and settlements faster, safer and more efficient.
Measures to promote digital payments have also contributed to a significant increase in retail digital transactions, with the number rising from around 10 billion to 12 billion during the past year.
The governor said the growth of digital payments reflected increasing technology adoption while contributing to a more documented, transparent and efficient economy.
Focus on financial inclusion
Ahmad said the SBP remained committed to expanding financial inclusion and ensuring that all segments of society had access to the formal financial system.
He highlighted the launch of InvestPak, which is aimed at providing the public with convenient, secure and transparent investment opportunities.
The central bank is also continuing initiatives to promote Islamic banking, green finance, cybersecurity and financial technology, he added.
Governor stresses economic self-reliance
Governor Ahmad said economic self-reliance, strong institutions, adherence to the rule of law and national unity remained essential to achieving the true spirit of independence.
While acknowledging the progress made during the past year, he said Pakistan continued to face challenges requiring sustained diligence, commitment and resolve.
Looking ahead, he said the SBP would remain focused on price stability, policy reforms, higher productivity, export growth and job creation.
These priorities, he said, would be critical to converting economic stability into sustainable development and laying the foundation for a stronger and more prosperous Pakistan.
Governor Ahmad also appreciated the dedication and professional commitment of SBP officers and employees, saying the progress achieved during the year reflected their collective efforts.
The ceremony concluded with a reaffirmation of the central bank’s commitment to sustainable economic development, financial stability and the economic welfare of the people of Pakistan.