Pakistan's forex reserves to hit $14 billion by June, growth at 3%: SBP

Pakistan’s foreign exchange reserves are expected to reach $14 billion by end June and economic growth would be around 3%, Governor of the State Bank of Pakistan, Jameel Ahmad, said and reaffirmed country’s improving macroeconomic stability and outlook.

He expressed these views during high-level meetings with senior executives from global financial and investment institutions, including JP Morgan, Standard Chartered, Deutsche, Jefferies, and major credit rating agencies on the sidelines of the IMF–World Bank Spring Meetings in Washington, D.C.

In a statement released Saturday, the central bank said Ahmad pointed to prudent monetary policy and sustained fiscal consolidation as key factors in stabilizing the economy. He noted that headline inflation dropped sharply to a multi-decade low of 0.7% in March 2025, while core inflation fell from over 22% to single digits. Inflation is expected to stabilize between 5% and 7% in the coming months, he said.

Ahmad also emphasized improvements in Pakistan’s external accounts, with foreign exchange reserves more than tripling since their lowest point in February 2023.

Unlike past trends, he said, the reserve buildup was not driven by increased external debt. Instead, Pakistan has reduced its public sector external debt both in absolute terms and as a percentage of GDP since June 2022.

The governor attributed the stronger reserves to a current account surplus and the central bank’s efforts to bolster economic resilience amid global trade uncertainties.

With economic conditions stabilizing, Pakistan’s GDP growth is expected to reach around 3% in the 2025 fiscal year, Ahmad said. He added that international credit agencies have taken note of the country’s progress.

Looking ahead, Ahmad said policymakers remain focused on maintaining stability and implementing structural reforms to ensure sustainable growth and socioeconomic development.