Pakistan's economy is improving, inflation to further drop, says SBP chief

State Bank of Pakistan (SBP) Governor Jameel Ahmad announced that Pakistan’s economic growth will surpass 3% in the current fiscal year.

Speaking at a press conference on Thursday, the SBP head stressed the importance of maintaining stable and gradual growth to avoid future balance of payments issues.

SBP governor also revealed the SBP’s inflation target for the current fiscal year, set at 5 to 7 per cent. He expressed optimism that if economic indicators improve and inflation remains under control, other sectors would also benefit.

“We hope that Pakistan’s current account will remain in surplus through December,” he added.

The SBP governor also provided an update on Pakistan’s foreign debt, which remains at a manageable level. As of now, the country’s actual foreign debt stands at $100.8 billion.

This figure has increased slightly by $500 million due to debt revaluation, but Ahmad reassured that the overall debt situation has significantly improved since 2022.

In terms of foreign exchange inflows, Mr Jameel stated that remittances have been stabilizing and are expected to total $35 billion by the end of this fiscal year.

Exports are also showing signs of improvement, though he called for more efforts to increase export volumes, which are essential for reducing reliance on remittances.