State Bank of Pakistan (SBP) Governor Jameel Ahmad warned that inflation could rise again in the coming months despite a temporary easing in March.

When he spoke at the launch of Pakistan Literacy Week in Karachi, SBP chief said inflation had fallen to a historic low of 0.7% in March 2025, but warned of a reversal starting next month.

“Despite the recent decline, inflation is expected to rise again,” he said, quoting former monetary tightening and import restrictions that helped stabilize the economy.

Jameel Ahmad noted that Pakistan faced serious challenges in 2022, with inflation that quickly accelerated, foreign reserves, which fell to two weeks of imports, and rupe is written off by up to 50%.

He said SBP had responded with aggressive political measures, including raising interest rates and imposing restrictions on imports. He added these steps, helped reduce the gap between interbank and open market exchange courses.

The SBP chief also said that Pakistan’s current account, which was a deficit last year, had returned to profits and was maintained through disciplined political interventions.

He confirmed that the country’s external payment obligations for FY25 amounted to $ 26 billion, of which $ 16 billion. Would be rolled over or refinanced. Of the remaining $ 10 billion. Was already paid $ 8 billion. Dollars.

In terms of growth, Ahmad GDP expected to expand between 2.5% and 3.5% at the end of FY25. However, he added that if the agricultural sector worked strongly, growth could reach 4.2%.