Published in The Express Tribune on July 08, 2025
KARACHI:
State Bank of Pakistan (SBP) Governor Jameel Ahmad has said that the central bank is fully committed to undertaking structural reforms and laying the foundation for sustainable and inclusive economic growth.
He was speaking at the launching ceremony of the Women Entrepreneurs Finance Code in Karachi, organised jointly by SBP and the Asian Development Bank (ADB). The event featured national and international dignitaries, who expressed solidarity with the important cause of women’s economic empowerment.
Jameel Ahmad, in his keynote address, said that both SBP and the government remain steadfast in their approach to transitioning from the recently hard-earned economic stability to medium-term economic transformation. “This resolve is reflected in our prudent and cautious monetary policy stance, fundamentals-aligned exchange rate, ongoing fiscal consolidation and improving debt dynamics.”
He added that this approach is helping to ensure overall macroeconomic stability, building fiscal and external buffers and supporting sustainable economic growth.
With focus now increasingly shifting towards structural reforms, the governor believes that this time is indeed different for Pakistan’s economy due to the following facts:
The average headline inflation has declined to 4.5% in FY25 – the lowest level in nine years – and with prudent and coordinated mix of monetary and fiscal policies, the inflation will stabilise within its target range of 5-7%.
The foreign exchange market remains stable driven by external account outperformance and a high-quality buildup of forex reserve buffers. SBP’s reserves are now almost five times higher than the low levels witnessed at the start of 2023.
The current account balance is projected to remain supportive, driven by robust remittances and resilient exports, despite rapid growth in both the value and volume of imports in line with the ongoing economic recovery.
Fiscal policy has proactively supported monetary tightening, as reflected in the second consecutive primary surplus in FY25. Both tax and non-tax revenues have shown sizable growth, while overall expenditures have remained relatively contained. The government is targeting a higher primary surplus for FY26. Economic growth is showing signs of gradual, consistent and sustainable recovery.
Ahmad said that unlike in the previous episodes of boom-bust cycles, the current policy mix remains conducive to a lasting increase in economic activity rather than a short-sighted, fragile and populist “sugar rush”.
