‘No difficulties’ in Pakistan's external payments, says central bank chief

State Bank of Pakistan Governor Jameel Ahmad has said that Pakistan will fulfil its external payment obligations in 2026 without any difficulty.

Speaking to a group of journalists on Friday, Ahmad said external payments during the current year stand at $4.5 billion and these obligations “would be met without difficulty”.

He addressed a wide range of issues during the interaction, including the interest rate, new currency notes, and digital banking.

On the interest rate policy, the central bank governor rejected the perception that lower interest rates reduce government expenditure.

He said a reduction in rates leads to lower profits for the State Bank, which are transferred to the government as revenue. According to the governor, the SBP contributed PKR 2.4 trillion to the government in profits last year.

On the external sector, Ahmad said remittances are expected to exceed the annual target and could reach as high as $42 billion.

He said non-food exports have grown by 5% to 6%, while food exports have declined, with rice exports recording the sharpest drop. However, he expressed optimism that rice exports would recover with government support.

New currency notes

The governor said newly designed currency notes will not be available in time for Eid-ul-Fitr, as the designs are still awaiting cabinet approval, and printing will take additional time once clearance is granted.

The new banknotes will feature advanced security technologies that will allow ordinary citizens to easily distinguish genuine notes from counterfeit ones, he added.

He said three major foreign banks from different countries have expressed interest in opening branches in Pakistan, adding that discussions are underway, but the countries cannot yet be named.

Ahmad said significant progress has been made in digital payments, noting that the central bank aims to bring two million merchants into the digital system this year. He also said access to financing for small and medium-sized enterprises has improved, and expressed hope that lower interest rates would increase the availability of home loans.

The SBP governor said the central bank remains focused on strengthening financial inclusion, supporting economic stability and encouraging sustainable growth.