Pakistan’s macroeconomic indicators have shown faster-than-expected improvement since the beginning of the current fiscal year, reflecting strengthened economic fundamentals and continued policy implementation, according to remarks shared by State Bank of Pakistan Governor Jameel Ahmad during a series of investor briefings held alongside the IMF–World Bank Spring Meetings.
The engagements, conducted between April 13 and 18, 2026, included meetings with senior executives from leading global financial institutions such as JPMorgan Chase, Barclays, Citibank, Jefferies, and Franklin Templeton. The Governor also engaged with international credit rating agencies including Fitch Ratings, Moody’s, and S&P Global, as well as senior officials from the International Monetary Fund and the World Bank Group.
During the discussions, Governor Ahmad outlined that Pakistan had made significant progress in stabilizing its economy prior to the escalation of geopolitical tensions in the Middle East. He noted that a combination of prudent monetary and fiscal policies had helped stabilize inflation within target ranges while also strengthening both fiscal and external buffers.
He reported that average inflation during the first nine months of the fiscal year stood at 5.7 percent, while the external current account remained in surplus. Foreign exchange reserves held by the State Bank of Pakistan increased to $16.4 billion, supported primarily by purchases from the interbank foreign exchange market. The Governor further projected that reserves could rise to approximately $18 billion by June 2026, driven by continued inflows and official financing arrangements.
The Governor emphasized that Pakistan’s current macroeconomic position is stronger compared to earlier periods of external shocks, such as the global disruptions following the Russia–Ukraine conflict in 2022. However, he also acknowledged that new risks have emerged due to rising geopolitical tensions in the Middle East, which have contributed to higher global energy prices as well as increased freight and insurance costs.
Despite these external pressures, Governor Ahmad reaffirmed that both the State Bank and the government remain committed to maintaining price stability and safeguarding macroeconomic fundamentals. He noted that monetary policy has remained cautiously tight, with real interest rates staying positive to manage inflation expectations. At the same time, fiscal authorities have maintained primary surpluses while implementing targeted subsidies and austerity measures to control demand.
He also highlighted recent progress under Pakistan’s international financial engagement framework, including a staff-level agreement with the IMF for the third review of the Extended Fund Facility and the second review of the Resilience and Sustainability Facility. In addition, reaffirmation of credit ratings by a major agency was cited as external validation of ongoing reform efforts.
Beyond macroeconomic discussions, the Governor also participated in outreach sessions with the Pakistani diaspora and international stakeholders during a Remittances and Roshan Digital Account (RDA) roadshow. He noted that RDA inflows have surpassed $12.4 billion, processed through more than 917,000 accounts, marking a significant milestone in digital financial integration. He further outlined enhancements to the RDA framework, including expanded eligibility for non-resident entities, aimed at deepening integration with global financial markets and attracting broader foreign investment into Pakistan’s financial system.
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