The State Bank of Pakistan (SBP) Governor Jameel Ahmed said that economic reforms have helped stabilize Pakistan’s economy. He spoke at the 9th Annual Microfinance Conference in Karachi, emphasizing that recent policy and regulatory changes have strengthened growth. He added that Pakistan’s economic recovery is underway and expected to gain further momentum in the current fiscal year.
Mr. Ahmed said inflation has declined sharply and will likely stay within the government’s target of 5-7 percent. He also mentioned that foreign exchange reserves have increased nearly five times since February 2023. This improvement came from strategic interbank purchases that reduced the need for expensive borrowing, easing the country’s debt burden.
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The SBP chief acknowledged that recent floods temporarily hurt the agriculture sector, but he remained confident about growth in FY26. He highlighted economic reforms in the microfinance sector, including revised regulations that promote flexibility and encourage larger loans for agriculture, housing, and small businesses. These steps, he said, aim to make credit more accessible to struggling communities.
Mr. Ahmed also introduced new initiatives under the World Bank-funded Resilient and Accessible Microfinance Project. The Climate Risk Fund will support two million borrowers through liquidity facilities that help withstand climate shocks. In addition, the Risk Coverage Scheme will protect small farmers and underserved regions, offering incentives for lending in remote areas like Balochistan and Gilgit-Baltistan.
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He concluded that Pakistan’s economic reforms are driving stability, improving investor confidence, and supporting inclusive growth. The SBP’s continued focus on reform, innovation, and resilience, he said, will secure long-term prosperity for the nation.