State Bank of Pakistan (SBP) Governor Jameel Ahmad has reaffirmed the central bank’s focus on maintaining price stability, advancing policy reforms and creating an economic environment that supports higher productivity, export growth and employment. Speaking during a flag-hoisting ceremony held at SBP Karachi to commemorate Pakistan’s 79th Independence Day, Ahmad said the country had made meaningful progress toward economic stability during the past year, supported by prudent fiscal and monetary policies and greater economic discipline. He said the focus going forward would be to consolidate these gains while creating conditions that allow businesses to expand, investment to increase and economic activity to generate more employment opportunities.
The SBP governor highlighted developments in inflation and monetary policy, noting that average inflation during fiscal year 2025-26 stood at 7.1%. He said the central bank considers the existing monetary policy stance appropriate for keeping inflation within its medium-term target range of 5% to 7%, while also allowing sufficient room for economic activity, investment and job creation. According to Ahmad, the combination of fiscal and monetary discipline has also supported economic growth, which reached 3.7% during FY26. For the current fiscal year, economic growth is expected to remain between 3.5% and 4.5%, which the governor described as an encouraging indication that Pakistan’s economy is continuing its transition toward sustainable growth following a period focused heavily on macroeconomic stabilisation.
Developments in the external sector were another key area highlighted by the SBP governor, particularly the contribution of overseas Pakistanis through remittances. Ahmad said remittances exceeded $41 billion during FY26, reflecting strong confidence among overseas Pakistanis in the country’s economic progress. He said remittance inflows are expected to reach $44 billion in FY27. The increase in remittances, together with a low current account deficit, has supported an improvement in Pakistan’s foreign exchange position. According to Ahmad, foreign exchange reserves reached $18.4 billion by the end of FY26 and are expected to exceed $21 billion during FY27. The stronger reserve position provides greater support to the country’s external accounts and remains an important component of the broader economic stabilisation process.
Ahmad also outlined steps taken by the State Bank of Pakistan to strengthen and modernise the country’s financial system. He specifically highlighted the launch of PRISM+, which has brought Pakistan’s payment infrastructure closer to international standards by making large-value payments and settlements faster, safer and more efficient. The central bank has also continued measures aimed at increasing the use of digital payment channels across the economy. According to the governor, the number of retail digital transactions increased from around 10 billion to 12 billion during the past year. He said the expansion of digital payments represents more than increased adoption of technology, as it also supports the development of a more documented, transparent and efficient economy by shifting a greater volume of financial activity toward formal digital channels.
The continued expansion of digital financial services is part of the broader changes taking place within Pakistan’s banking and payments infrastructure. As consumers, businesses and institutions increasingly use digital channels for retail transactions, the financial system is handling a growing volume of electronic payments. The SBP’s efforts to modernise payment infrastructure and promote digital channels are intended to support this transition while improving the efficiency and security of financial transactions. The rise in retail digital transactions during FY26 indicates the scale of this shift and highlights the growing role of payment technology in Pakistan’s financial system. The development of stronger payment infrastructure also supports wider economic documentation and can contribute to greater transparency in financial activity.
The governor also stressed that economic stability alone would not be sufficient to achieve Pakistan’s longer-term development objectives. He identified economic self-reliance, strong institutions, adherence to the rule of law and national unity as important requirements for translating the gains from stabilisation into sustainable development. Ahmad said the State Bank had made significant progress during the past year, but challenges remained and would require continued diligence, commitment and resolve. His remarks place continued emphasis on maintaining discipline while also addressing the structural factors that influence productivity, investment, exports and employment. The central bank’s priorities therefore extend beyond inflation management to supporting conditions that can contribute to broader economic development.
The focus on export growth is particularly significant as Pakistan seeks to strengthen its external position and reduce vulnerabilities associated with foreign exchange pressures. Higher exports, combined with strong remittance inflows and a manageable current account position, can provide additional support to foreign exchange reserves and improve the resilience of the external sector. Ahmad’s emphasis on productivity and exports indicates that the next phase of economic policy will need to focus not only on maintaining stability but also on strengthening the capacity of the economy to generate sustainable growth. Greater productivity can support businesses in competing in international markets, while stronger exports can provide a more durable source of foreign exchange earnings.
The Independence Day ceremony concluded with the State Bank of Pakistan reaffirming its commitment to sustainable economic development, financial stability and the welfare of the people. Ahmad’s remarks outlined a policy direction centred on maintaining price stability, continuing reforms, strengthening the financial system, expanding digital payments and supporting economic activity. With FY26 growth recorded at 3.7%, inflation averaging 7.1%, remittances exceeding $41 billion and foreign exchange reserves reaching $18.4 billion by the end of the fiscal year, the central bank sees the economy as having moved further from the period of acute stabilisation pressures. The challenge ahead will be to preserve these improvements while raising productivity, expanding exports and creating the conditions for sustained economic growth and employment.
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