State Bank of Pakistan (SBP) Governor Jameel Ahmad has stressed that continued economic reforms, price stability and a supportive policy environment will be essential for Pakistan to move from economic stabilisation towards sustainable development. He said the central bank’s priorities will remain focused on maintaining price stability, advancing policy reforms and creating conditions that support higher productivity, export growth and job creation.
The Governor made the remarks while addressing a flag hoisting ceremony at SBP Karachi to mark Pakistan’s 79th Independence Day. According to a press release issued by SBP, Jameel Ahmad said the country’s economy had made important progress towards stability during the past year and was now moving towards a phase of sustainable growth. He emphasised that maintaining this progress would require continued policy discipline and reforms.
The Governor said prudent fiscal and monetary policies had played an important role in supporting price stability. Average inflation during FY26 stood at 7.1%, while SBP’s current monetary policy stance remains aimed at keeping inflation within the medium term target range of 5% to 7%. At the same time, the policy approach is intended to provide sufficient room for economic activity, investment and employment generation.
Economic growth also improved during FY26, reaching 3.7%, according to the Governor. He projected that growth could strengthen further during FY27, with the economy expected to expand between 3.5% and 4.5%. The outlook reflects the transition from stabilisation towards broader economic activity, although maintaining macroeconomic stability remains an important part of the policy framework.
Pakistan’s external position also showed improvement during the year. Jameel Ahmad highlighted record remittances from overseas Pakistanis, which crossed $41 billion in FY26. Remittances are projected to reach $44 billion in FY27. According to the Governor, stronger remittance inflows, combined with a low current account deficit, contributed to an increase in the country’s foreign exchange reserves.
Foreign exchange reserves reached $18.4 billion by the end of FY26, while reserves are expected to exceed $21 billion during FY27. The improvement in external buffers provides greater support for economic stability and reflects the importance of sustained remittance inflows and management of the country’s external account.
Jameel Ahmad also outlined steps taken by SBP to strengthen and modernise Pakistan’s financial system. He highlighted the successful rollout of PRISM+, which has brought the country’s payment infrastructure closer to international standards. The upgraded system has made large value payments and settlements faster, safer and more efficient.
The Governor also pointed to significant growth in retail digital transactions following SBP’s continued efforts to expand digital payments. Retail digital transactions increased from around 10 billion to 12 billion over the past year. He said the increase reflects greater adoption of technology as well as progress towards a more documented and transparent economy.
Financial inclusion was another area highlighted during the address. Jameel Ahmad said SBP remains committed to ensuring that people from all segments of society can access the formal financial system. He referred to the launch of InvestPak as part of these efforts, providing the public with convenient, secure and transparent investment opportunities.
SBP is also continuing its work in Islamic banking, green finance, cybersecurity and financial technology. These areas are increasingly important to the development of a financial system that can support economic activity while maintaining security, resilience and technological readiness.
The Governor also linked economic progress with broader institutional and national priorities. He said economic self reliance, strong institutions, the rule of law and national unity remain important elements of the true spirit of independence. While acknowledging the progress achieved during the past year, he stressed that Pakistan continues to face challenges that require sustained attention, discipline and resolve.
Jameel Ahmad also praised SBP officers and employees for their hard work, commitment and professional dedication. He attributed the progress achieved by the central bank during the past year to the collective efforts of its workforce.
The Independence Day ceremony concluded with SBP reaffirming its commitment to supporting sustainable economic development, financial stability and public welfare. The central bank’s stated priorities for the coming period place continued emphasis on reforms, stable prices, stronger productivity, export growth, employment and a modern financial system as Pakistan seeks to build on recent economic stabilisation.
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