4 days ago
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SBP Governor advocates economic resilience, reforms
KARACHI: Governor State Bank (SBP) of Pakistan Jameel Ahmad said that SBP is striving to ensure monetary and financial stability for long-term prosperity of the nation.
In his keynote address, after flag hoisting ceremony at SBP Karachi to mark 78th Independence Day of Pakistan, Jameel Ahmad said that in recent past, Pakistan has faced unprecedented economic challenges and now on a path towards economic stability and sustainable growth.
The Governor noted that 'Inflation had reached 38 percent in May 2023' adding 'in response, SBP adopted a series of measures aimed at curbing inflation. These efforts paid off, with inflation dropping to 11.8 percent by May 2024, and to a historic low of 3.2 percent by June 2025'.
SBP speaks well of economic situation
Governor said that SBP responded to improving inflation outlook by reducing the policy rate in seven gradual steps, from 22 percent to 11 percent, since June 2024. 'Our monetary policy remains geared towards maintaining the hard-earned gains in price stability, while ensuring inflation remains within 5-7 percent,' Ahmad said, adding 'this will help unlock broader economic and business opportunities.'
He noted external sector improvements and shared that Pakistan's foreign exchange reserves have nearly tripled, rising from $4.4 billion at the end of FY23 to $14.5 billion by the end of FY25. He said that a current account surplus of $2.1 billion, the first in 14 years and record-high remittances of $38.3 billion from overseas Pakistanis have significantly contributed to this improvement.
He also noted that SBP has endeavoured to build-up foreign exchange reserves to improve economic resilience against external shocks.
He added the build-up of reserves has been achieved without any increase in foreign debt. International credit rating agencies have upgraded Pakistan's ratings in recognition of recent measures which will help unlock foreign investment opportunities, Governor SBP said.
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