Karachi:
Pakistan’s economy has navigated one of the most turbulent times of recent history, characterized by record inflation, exhausted currency reserves and external account pressure.
From inflation, peaking at 38% in May 2023 to reserves that fell to critically low levels of $ 4.4 billion, the country faced severe macroeconomic instability. However, crucial monetary tightening, structural reforms and improved external influx have moved the track towards stability. When he spoke at Independence Day event, the State Bank of Pakistan (SBP) Governor Jameel Ahmad said that the economy is now on a path to sustainable growth, with inflation brought down to historically low, reserves tripled without adding foreign debt and the current account post a surplus for the first time in more than a decade.
SBP is reminded of the Day of Independence with a flag union ceremony. In his main address, Governor Jameel Ahmad said SBP strives to secure monetary and financial stability for the long -term prosperity of the nation’s prosperity.
He noted that in the recent past, “we have been exposed to unprecedented financial challenges, and we are now on a path to economic stability and sustainable growth”. The governor pointed out that inflation had reached 38% in May 2023 and in response, SBP adopted a number of measures. These efforts paid for, where inflation dropped to 11.8% in May 2024 and to a historic low of 3.2% by June 2025.
He noted that SBP responded to the improved inflation prospects by reducing its political rate in seven gradual steps, from 22%to 11%, since June 2024. “Our monetary policy remains aimed at maintaining the hard-earned gains in price stability while inflation remains within 5-7%,” Ahmad said. “This will help unlock wider financial and business opportunities.”
In terms of external sector improvements, he shared that Pakistan’s currency reserves have almost tripled and increased from $ 4.4 billion at the end of FY23 to $ 14.5 billion at the end of FY25. The current $ 2.1 billion account surplus, the first of 14 years, and record high transfers of $ 38.3 billion from overseas Pakistanis have significantly contributed to this improvement.
Ahmad emphasized that SBP has endeavored to build currency reserves to improve financial resistance to external shocks and added that the increase in reserves has been achieved without any increase in foreign debt. International credit rating agencies have upgraded Pakistan’s rating in recognition of recent measures, which will help unlock foreign investment opportunities.
By emphasizing the importance of technological innovation in economic inclusion, the governor highlighted SBP’s digital initiatives, including Spinning Off Raast – Pakistan’s immediate payment system – to a separate subsidiary to improve service offers to the adoption of digital payments. In addition, SBP has taken a number of measures to modernize payment infrastructure to enable the public to trade and transfer funds through advanced facilities.
He also said that the central bank has recently introduced an improved framework that allows the opening of accounts without the need to visit a bank branch. This will benefit the public, especially women.
