Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, reiterated Pakistan’s strengthening macroeconomic stability and improving outlook during a series of high-profile meetings with executives from top global financial and investment institutions such as JP Morgan, Standard Chartered, Deutsche Bank, Jefferies, and major credit rating agencies. These discussions took place on the sidelines of the IMF–World Bank (WB) Spring Meetings in Washington, D.C.
Governor Ahmad provided a detailed briefing to participants, outlining the steady progress Pakistan has achieved in restoring economic stability. He emphasized that the country’s consistent fiscal consolidation measures, combined with a cautious monetary policy steered by SBP, have significantly contributed to achieving macroeconomic resilience.
Ahmad proudly pointed out that headline inflation has witnessed a remarkable decline over the past two years, falling to a multi-decade low of 0.7 percent in March 2025. Core inflation has also eased from a peak of over 22 percent to single-digit levels, with further moderation expected in the coming months. Governor Ahmad projected that headline inflation would stabilize within the 5 to 7 percent target range soon, reflecting the effectiveness of SBP’s monetary strategies.
Turning to external sector improvements, Ahmad highlighted that Pakistan’s foreign exchange reserves under SBP management have more than tripled since their lowest point in February 2023. Importantly, this build-up of FX reserves has occurred without the accumulation of new external debt — a key difference from previous reserve increases. Ahmad noted that Pakistan’s public sector external debt has actually declined, both in absolute terms and as a share of GDP since June 2022. These developments, he stressed, underline SBP’s strategic efforts to enhance the country’s resilience against global financial volatility.
Governor SBP also revealed that the central bank is targeting to boost foreign exchange reserves to $14 billion by June 2025, primarily through prudent FX management and a surplus in the current account. He noted that this achievement showcases SBP’s proactive role in stabilizing external finances.
Ahmad further mentioned that with macroeconomic fundamentals improving, Pakistan’s GDP growth is on a recovery path and is forecast to reach around 3 percent in FY25. International credit rating agencies, he added, have acknowledged these positive trends. Concluding his discussions, Governor Ahmad expressed confidence that with the SBP’s continued policy efforts and the government’s reform initiatives, Pakistan is poised to achieve long-term, sustainable economic growth and improved living standards for its people.