State Bank of Pakistan Governor Jameel Ahmad has expressed optimism that Pakistan’s economy has finally navigated out of its challenging period and is now on a path toward sustained stability and growth. Speaking at the launch of the Women Entrepreneurs Finance Code, an event jointly organized by the SBP and the Asian Development Bank, Ahmad underscored the need to maintain the hard-won economic progress and avoid repeating past missteps.
The SBP governor noted that the economy had weathered several years of turbulence, but policy efforts have begun to bear fruit. He pointed out that economic growth is gradually gaining momentum, and emphasized that both the central bank and the government remain united in their strategy to shift from merely achieving stability to steering the country toward medium-term economic transformation.
This shift, he said, is clearly visible in the central bank’s measured monetary policy approach, a market-aligned exchange rate, continued fiscal consolidation, and improving debt indicators. Together, these strategies are strengthening macroeconomic stability, reinforcing Pakistan’s external and fiscal buffers, and setting the stage for durable growth.
Highlighting recent gains, Ahmad pointed out that headline inflation has eased to an average of 4.5 percent in FY25, the lowest in nine years. With what he described as a prudent mix of monetary tightening and fiscal discipline, he anticipates inflation will remain within the target range of 5 to 7 percent going forward. Meanwhile, Pakistan’s foreign exchange market has remained steady, supported by stronger-than-expected external account performance and a solid buildup of reserves. SBP’s own forex reserves are now nearly five times what they were at the start of 2023, signaling a notable turnaround.
The current account position, he added, is projected to stay supportive, buoyed by strong remittance inflows and resilient export activity. This is despite a noticeable rise in imports in both value and volume, reflecting the broader recovery of economic activity.
On the fiscal front, Ahmad observed that Pakistan has achieved a second consecutive primary surplus in FY25, with robust growth in both tax and non-tax revenues while keeping expenditures relatively contained. The government is targeting an even higher primary surplus for FY26. He argued this shows how fiscal policy has effectively complemented the SBP’s monetary tightening, helping secure overall macroeconomic stability.
Unlike the typical boom-bust cycles that have historically characterized Pakistan’s economy, Ahmad believes the current mix of policies is fostering a more steady and sustainable expansion, steering clear of short-lived, populist-driven surges that ultimately prove fragile.
The governor was clear that for growth to be meaningful, it must be both sustainable and inclusive. In this context, he stressed the critical role women entrepreneurs play in driving economic development and social progress. Supporting women-led micro, small, and medium enterprises, he said, is central to the SBP’s broader vision of nurturing a stable and inclusive financial system that underpins widespread economic participation.
Ahmad also commended the Asian Development Bank for its strong partnership and ongoing efforts to advance women’s financial inclusion in Pakistan. He particularly acknowledged the ADB’s role in helping the SBP adopt and implement the Women Entrepreneurs Finance Code, which Pakistan has now joined as a global signatory.
Deputy Governor SBP Saleemullah, who also spoke at the event, detailed the central bank’s initiatives to boost women’s access to finance, including the National Financial Inclusion Strategy and the pioneering Banking on Equality Policy aimed at embedding a gender perspective into the banking sector’s frameworks.
Senior officials from the ADB and World Bank echoed these sentiments, welcoming Pakistan’s participation in the Code. The event also featured engaging panel discussions that brought together policymakers, bankers, entrepreneurs, and civil society voices to explore ways to overcome barriers and foster a more inclusive entrepreneurial ecosystem.
Taken together, these remarks and initiatives painted a picture of a Pakistani economy moving beyond its past difficulties, with the SBP championing structural reforms and targeted financial inclusion as key pillars of a more resilient and equitable growth trajectory.