Karachi:
Pakistan’s economy has saved one of the most turbulent periods in recent history, marked by record inflation, exhausted exchange reserves and external pressures.
Inflation from 38% in May 2023 to reserves falling to seriously low levels at $ 4.4 billion, the country was faced with severe macroeconomic instability. However, decisive monetary tightening, structural reforms and improving external inputs have moved the trajectory to stability. Speaking during the independence Day event, the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, said that the economy was now on the path of sustainable growth, inflation brought back to historic stockings, tripled reserves without adding foreign debt and the current account displaying an excess for the first time in more than a decade.
The SBP commemorated the day of independence with a hinging ceremony of the flag. In his opening speech, Governor Jameel Ahmad said that the SBP is trying to ensure monetary and financial stability of the nation’s long -term prosperity.
He noted that in a recent past, “we have faced unprecedented economic challenges and we are now on the path of economic stability and sustainable growth”. The governor stressed that inflation had reached 38% in May 2023 and in response, the SBP adopted a series of measures. These efforts have borne fruit, inflation falling at 11.8% by May 2024 and a historic hollow of 3.2% by June 2025.
He pointed out that the SBP responded to improving inflation prospects by reducing its policy rate in seven progressive stages, from 22%to 11%, since June 2024. “Our monetary policy remains focused on the maintenance of earnings hardly won in price stability, while ensuring that inflation remains 5-7%,” said Ahmad. “This will help unlock wider economic and commercial opportunities.”
Regarding improvements in the external sector, he shared that Pakistan exchange reserves almost tripled, going from $ 4.4 billion at the end of 23 to 14.5 billion dollars at the end of the financial year 25. The current account surplus of 2.1 billion dollars, the first in 14 years and the shipping funds of 38.3 billion dollars of dollars Foreign Pakistanis have greatly contributed to this improvement.
Ahmad stressed that the SBP has endeavored to build exchange reserves to improve economic resilience against external shocks, adding that the increase in reserves was obtained without any increase in foreign debt. International credit rating agencies have improved Pakistan’s note in recognition of recent measures, which will help unlock foreign investment opportunities.
Stressing the importance of technological innovation in financial inclusion, the Governor underlined the digital initiatives of the SBP, in particular the Spinning Off Raast – the instant payment system of Pakistan – in a separate subsidiary to improve service offers for the adoption of digital payments. In addition, the SBP has taken a number of measures to modernize the payment infrastructure to allow the public to transform and hand over funds via advanced facilities.
He also said that the Central Bank had recently introduced an improved executive which allows the opening of accounts without the need to visit a banking branch. This will benefit the public, especially women.
