Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, presented a positive outlook for Pakistan’s macroeconomic trajectory in meetings with international financial leaders during the IMF–World Bank Spring Meetings in Washington, D.C. Engaging with senior executives from leading global financial institutions—including JP Morgan, Deutsche Bank, Standard Chartered, Jefferies—and major credit rating agencies, Governor Ahmad provided an update on the country’s macroeconomic turnaround and policy reforms.
He underscored the impact of Pakistan’s disciplined monetary policy and ongoing fiscal consolidation, emphasizing that these measures have brought about a significant degree of macroeconomic stability. Notably, headline inflation dropped to a historic low of 0.7% in March 2025—marking a multi-decade low—while core inflation also declined sharply from over 22% to single-digit levels. Governor Ahmad stated that inflation is projected to stabilize within the SBP’s target range of 5% to 7% in the coming months, supporting sustainable consumer and business confidence.
On the external front, Governor Ahmad highlighted a notable strengthening of Pakistan’s foreign exchange (FX) position. The SBP’s FX reserves have more than tripled since their low point in February 2023, and forward liabilities have declined significantly. Importantly, he clarified that this buildup is not driven by additional external borrowing. Instead, it results from improved current account balances and strategic foreign exchange purchases, reflecting the central bank’s proactive approach to enhancing Pakistan’s resilience to external shocks.
He further noted that public sector external debt—both in absolute terms and as a share of GDP—has declined since June 2022, signaling reduced external vulnerability. With a target of reaching $14 billion in FX reserves by June 2025, SBP aims to sustain the momentum in reserve accumulation and further buffer the economy against global trade and financial risks.
Governor Ahmad informed investors that economic activity is gradually picking up, with GDP growth expected to reach around 3% in FY25. He also mentioned that international credit rating agencies have taken note of the country’s economic stabilization, reaffirming investor confidence in Pakistan’s economic management.
He concluded that the government remains committed to safeguarding macroeconomic stability and pursuing structural reforms across key sectors. This long-term reform agenda, he stressed, is essential for achieving broad-based, sustainable growth and socioeconomic upliftment for the people of Pakistan.