Governor SBP briefs global investors on Pakistan's economic outlook

Governor State Bank of Pakistan (SBP), Jameel Ahmad, briefed global investors on the improvements in Pakistan’s economy and its promising outlook during the 2024 IMF-World Bank annual meetings in Washington, DC.

He shared insights into SBP’s strategic plan for 2024-2028, which focuses on price stability, building FX reserves, and developing an innovative and inclusive digital financial services ecosystem.

Ahmad met with delegates from international rating agencies and key global investors at events hosted by leading financial institutions, including Standard Chartered, JP Morgan, Bank of America, and Jefferies.

He highlighted Pakistan's significantly improved economic indicators over the past year, emphasizing a promising economic outlook.

He credited SBP’s prudent monetary policy and the government’s fiscal consolidation for restoring macroeconomic stability.

The governor acknowledged the challenges faced by global and emerging economies, including Pakistan, and stressed the need for tough policy responses.

He noted that both SBP and the government have implemented vital stabilization measures, which are now yielding positive results.

Inflation has peaked and is on a downward trajectory, while the external account has improved significantly, with strengthened foreign exchange buffers.

Jameel Ahmad explained that inflation in Pakistan peaked at 38% in May 2023 and has since declined to 6.9% in September 2024. He attributed the improvement in the current account balance to strong growth in exports and workers’ remittances.

SBP’s FX reserves have increased from $3.1 billion in January 2023 to $11 billion as of October 11, 2024, with a target of $13 billion by June 2025.

Looking ahead, Mr. Ahmad emphasized the importance of the structural reform agenda, supported by multilateral and bilateral partnerships under the new IMF program. This comprehensive reforms package aims to foster sustainable growth and enhance the efficiency, effectiveness, fairness, and stability of the financial system.