SBP Governor Highlights Pakistan’s Economic Stability at IMF-WB Meetings

Governor Jameel Ahmad of the State Bank of Pakistan (SBP) showcased Pakistan’s strengthening macroeconomic stability during high-level meetings with executives from global financial giants like JP Morgan, Standard Chartered, Deutsche Bank, Jefferies, and credit rating agencies, held on the sidelines of the IMF–World Bank Spring Meetings in Washington, D.C.

Ahmad highlighted Pakistan’s economic progress, driven by a prudent monetary policy and sustained fiscal consolidation, which have fortified macroeconomic fundamentals. He revealed that headline inflation plummeted to a multi-decade low of 0.7% in March 2025, while core inflation dropped from over 22% to single digits, projected to stabilize within the 5–7% target range.

On the external front, Ahmad emphasized a remarkable recovery, with SBP’s foreign exchange (FX) reserves tripling since February 2023, alongside a sharp reduction in forward liabilities. Unlike past trends, this reserve growth stemmed from FX purchases amid an external current account surplus, not new borrowing. Public sector external debt has also declined since June 2022, both in absolute terms and as a share of GDP. The SBP aims to elevate reserves to $14 billion by June 2025.

Ahmad projected GDP growth to rebound to 3% in FY25, noting that international credit rating agencies have acknowledged Pakistan’s economic strides. He reaffirmed the SBP’s commitment to macroeconomic stability and structural reforms for sustainable growth and socioeconomic uplift, expressing strong confidence in achieving long-term economic resilience.