SBP to maintain focus on price stability, reforms and sustainable economic growth

State Bank of Pakistan (SBP) Governor Jameel Ahmad has said the central bank will continue to prioritise price stability, structural reforms and the creation of a business-friendly economic environment

KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has said the central bank will continue to prioritise price stability, structural reforms and the creation of a business-friendly economic environment aimed at boosting productivity, exports and employment.

Addressing a flag-hoisting ceremony held at the SBP headquarters in Karachi to mark Pakistan’s 79th Independence Day, Governor Ahmad said the country had made notable progress towards macroeconomic stability over the past year.

He attributed the improvement to disciplined fiscal and monetary policies, better economic management and continued efforts to strengthen financial and economic institutions.

Inflation remains within medium-term range

Speaking about the inflation outlook, the SBP governor said average inflation during fiscal year 2025-26 stood at 7.1 percent.

He said the central bank believed that the prevailing monetary policy stance was appropriate for keeping inflation within its medium-term target range of 5 to 7 percent.

According to Ahmad, the current policy framework also provides sufficient space for economic activity to continue, while supporting investment and employment generation.

The governor said maintaining price stability would remain a central objective of the SBP as Pakistan seeks to move from short-term stabilisation towards sustained economic expansion.

Growth expected to strengthen

Ahmad said Pakistan’s economy recorded growth of 3.7 percent in FY26, reflecting the impact of improved macroeconomic conditions and greater fiscal and monetary discipline.

Looking ahead, he projected economic growth in the range of 3.5 to 4.5 percent during FY27.

He described the outlook as encouraging, saying the economy was gradually moving towards a more sustainable growth path after going through a difficult period of economic stabilisation.

The governor stressed that maintaining policy discipline would be important to ensure that the gains achieved in recent years translate into durable economic development.

Remittances strengthen external position

The SBP chief also highlighted improvements in Pakistan’s external sector, particularly the performance of workers’ remittances.

He said overseas Pakistanis had demonstrated confidence in the country by sending record amounts of money home, with remittances surpassing $41 billion during FY26.

The inflow is expected to increase further, with remittances projected to reach around $44 billion in FY27, according to the governor.

Ahmad said stronger remittance inflows, combined with a relatively low current account deficit, had helped improve Pakistan’s foreign exchange position.

The country’s foreign exchange reserves reached $18.4 billion by the end of FY26, while the SBP expects reserves to rise above $21 billion during FY27.

He said strengthening the external position would help improve economic resilience and provide greater capacity to withstand external shocks.

SBP pushes digital transformation

The governor also outlined measures taken by the central bank to modernise Pakistan’s financial infrastructure and expand the use of digital payment channels.

He pointed to the successful launch of PRISM+, saying the upgraded payment and settlement infrastructure had brought Pakistan’s large-value payment system closer to international standards.

The system has improved the speed, security and efficiency of large-value payments and settlements, he said.

Ahmad added that SBP initiatives aimed at encouraging digital payments had resulted in a substantial increase in the use of electronic channels.

Retail digital transactions increased from approximately 10 billion to 12 billion over the past year, reflecting growing adoption of technology across the financial system.

According to the governor, the shift towards digital payments is more than a technological development. It is also contributing to greater documentation, transparency and efficiency within the economy.

Self-reliance and institutions vital for progress

Governor Ahmad said Pakistan’s long-term economic success would depend not only on financial and monetary policies but also on stronger institutions, economic self-reliance, respect for the rule of law and national unity.

He emphasised that the country’s journey towards sustainable development required continued commitment and collective efforts from institutions, businesses and citizens.

While acknowledging the progress achieved during the past year, he cautioned that Pakistan continued to face economic challenges that required sustained attention, policy consistency and determination.

He said the objective should now be to convert the gains from economic stabilisation into a durable foundation for investment, productivity, exports and employment.

The governor reaffirmed that the SBP would continue playing its role in supporting monetary and financial stability while contributing to broader efforts aimed at improving the welfare of the Pakistani people.