State Bank of Pakistan (SBP) Governor Jameel Ahmad has reaffirmed Pakistan’s strengthening macroeconomic fundamentals in a series of high-level meetings with global financial institutions and credit rating agencies. These discussions were held on the sidelines of the International Monetary Fund (IMF) and World Bank Spring Meetings, where Governor Ahmad shared detailed insights into Pakistan’s economic progress and reform agenda.
According to an official statement from the SBP, the Governor met with senior executives from top-tier institutions including JP Morgan, Deutsche Bank, Standard Chartered, Jefferies, and major international credit rating agencies. During these engagements, Governor Ahmad emphasized that the country’s economy has entered a phase of improved stability, owing to prudent monetary policy decisions and consistent fiscal consolidation efforts.
“Governor Ahmad briefed participants on the tangible progress Pakistan has made in stabilizing its economy,” the statement read. “He highlighted that a prudent monetary policy, combined with sustained fiscal consolidation efforts, has led to macroeconomic stability in the country.”
One of the key achievements highlighted was the significant decline in headline inflation, which dropped to a multi-decade low of 0.7% in March 2025. This marked improvement comes after years of elevated inflationary pressures. Similarly, core inflation has decreased sharply from above 22% to single-digit levels, indicating broad-based relief for consumers and businesses. Ahmad projected that headline inflation will remain within the central bank’s target range of 5 to 7% in the months ahead.
In terms of the external sector, the Governor reported a substantial improvement in Pakistan’s foreign exchange (FX) buffers. SBP’s FX reserves have more than tripled since reaching their lowest point in February 2023, and forward liabilities have also been significantly reduced. Importantly, this reserve build-up is not fueled by external borrowing—a marked change from past trends—but instead stems from FX purchases supported by a surplus in the current account.
Ahmad stated that Pakistan’s public sector external debt has declined both in absolute terms and as a percentage of GDP since June 2022, further underscoring the positive shift in fiscal discipline and debt management. He credited this to SBP’s focused policy efforts to build resilience against global trade-related uncertainties and external shocks.
Looking ahead, the SBP aims to boost FX reserves to $14 billion by June 2025, enhancing Pakistan’s financial stability. The Governor also noted that GDP growth is expected to reach around 3% in fiscal year 2025, signaling a gradual recovery as macroeconomic conditions improve.
Governor Ahmad also highlighted the positive response from international credit rating agencies, which have acknowledged Pakistan’s ongoing economic reforms and improving fiscal indicators. He emphasized that the country remains committed to pursuing structural reforms, particularly in sectors such as energy, industry, and banking, to sustain long-term growth.
In closing, the SBP Governor expressed optimism that with continued progress on key reforms and policy discipline, Pakistan is well-positioned to achieve sustainable economic growth and socioeconomic uplift. He also called on banks to increase lending to small and medium-sized enterprises (SMEs), recognizing their role in job creation and inclusive development.