The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, reassured global investors about Pakistan’s improving macroeconomic outlook during meetings with senior executives from top financial institutions. These meetings took place at the IMF-World Bank Spring Meetings in Washington, D.C. The institutions included JP Morgan, Standard Chartered, Deutsche, Jefferies, and major credit rating agencies.
Governor Ahmad briefed the participants on Pakistan’s economic progress, emphasizing that prudent monetary policy and fiscal consolidation have stabilized the economy. He pointed out a significant reduction in headline inflation, which dropped to a multi-decade low of 0.7% in March 2025. He also mentioned that core inflation had fallen from above 22% to single digits, with further moderation expected.
Regarding Pakistan’s external accounts, the SBP Governor reported a significant improvement in foreign exchange (FX) buffers. SBP’s FX reserves have tripled since their lowest point in February 2023. He clarified that this rise in reserves was not due to external debt accumulation but through FX purchases amidst a surplus in the external current account. The governor expressed confidence that FX reserves would reach $14 billion by June 2025.
Governor Ahmad also projected that Pakistan’s GDP growth would gradually recover, expecting a growth rate of around 3% for FY25. He highlighted that international credit rating agencies have recognized these improvements. The Governor expressed optimism about achieving sustainable economic growth and socioeconomic uplift through ongoing structural reforms and continued focus on macroeconomic stability.