Karachi:
Pakistan’s economy has sailed one of the most turbulent times in recent history, marked by record inflation, exhausted currency reserves and external accounts pressures.
From a maximum inflation to 38% in May 2023 to reserves that fall to critically low levels at $ 4.4 billion, the country faced severe macroeconomic instability. However, decisive monetary tightening, structural reforms and improved external entries have changed the trajectory to stability. Speaking at the Independence Day event, the governor of the State Bank of Pakistan (SBP), Jameel Ahmad, said the economy is now on their way to sustainable growth, with inflation to historical minimums, triplicate reserves without adding foreign debt and the current account that publishes a surplus for the first time in more than a decade.
The SBP commemorated Independence Day with a flag lifting ceremony. In his opening speech, Governor Jameel Ahmad said the SBP strives to guarantee monetary and financial stability for the nation’s long -term prosperity.
He pointed out that in the recent past, “we have faced unprecedented economic challenges and now we are on the way to economic stability and sustainable growth.” The governor said that inflation had reached 38% in May 2023 and, in response, the SBP adopted a series of measures. These efforts were worth it, with 11.8% inflation in May 2024 and a historical minimum of 3.2% in June 2025.
He commented that the SBP responded to the improvement of the inflation perspective by reducing its policy rate in seven gradual steps, from 22%to 11%, from June 2024. “Our monetary policy is still aimed at maintaining hard profits in prices stability, while ensuring that inflation remains within 5-7%,” said Ahmad. “This will help unlock broader economic and commercial opportunities.”
With regard to the improvements of the external sector, he shared that Pakistan’s foreign exchange reserves have almost tripled, increasing $ 4.4 billion at the end of fiscal year 23 to $ 14.5 billion at the end of the fiscal year 2015. The current account surplus of $ 2.1 billion, the first in 14 years and the record remittances of $ 38.3 billion Pakistani abroad have contributed significantly to this improvement.
Ahmad emphasized that the SBP has struggled to build foreign exchange reserves to improve economic resilience against external shocks, adding that the increase in reserves has been achieved without any increase in foreign debt. International credit rating agencies have improved Pakistan’s rating in recognition of recent measures, which will help unlock foreign investment opportunities.
Emphasizing the importance of technological innovation in financial inclusion, the governor highlighted the digital initiatives of the SBP, including Rasta’s turn, the Pakistan Instant Payment System, in a separate subsidiary to improve the service offers for the adoption of digital payments. In addition, the SBP has taken a series of measures to modernize the payment infrastructure to allow the public to make transactions and send funds through avant -garde facilities.
He also said that the Central Bank has recently introduced an improved frame that allows the opening of accounts without the need to visit a bank branch. This will benefit the public, especially women.
