The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, warned that inflation could increase again in the coming months, despite a temporary relaxation in March.
Speaking during the launch of Pakistan Literacy Week in Karachi, the head of the SBP said that inflation had fallen to a historic hollow of 0.7% in March 2025, but warned against a reversal from next month.
“Despite the recent drop, inflation should increase again,” he said, citing monetary tightening and previous import restrictions that have helped stabilize the economy.
Jameel Ahmad noted that Pakistan was confronted with serious challenges in 2022, inflation accelerating quickly, foreign reserves falling to two weeks of imports and the rupee depreciating up to 50%.
He said that the SBP had responded with aggressive policy measures, including increase in interest rates and the taxation of import restrictions. These steps, he added, helped reduce the gap between interbank exchange rates and the free market.
The SBP chief also said that the Pakistan’s current account, which was in deficit last year, had returned to the surplus and was maintained by disciplined political interventions.
He confirmed that the country’s external payment obligations for the 2016 fiscal year amounted to $ 26 billion, of which $ 16 billion would be returned or refined. Of the remaining $ 10 billion, $ 8 billion had already been paid.
Regarding growth, Ahmad projected GDP to expand between 2.5% and 3.5% by the end of fiscal year 25. However, it added that if the agricultural sector occurred strongly, growth could reach 4.2%.
