KARACHI, October 27, 2024 — State Bank of Pakistan (SBP) Governor Jameel Ahmad provided an optimistic outlook on Pakistan’s economy, highlighting significant improvements in key economic indicators during recent meetings with international rating agencies and global investors at the 2024 IMF-World Bank annual meetings in Washington, DC.
In a statement from the central bank, Ahmad attributed the country’s restored macroeconomic stability to the SBP’s prudent monetary policies and the government’s fiscal consolidation efforts.
He acknowledged the ongoing challenges faced by both global and emerging economies but emphasized the importance of implementing necessary policy responses.
The Governor reported a substantial decrease in inflation, which peaked at 38% in May 2023, now down to 6.9% year-on-year as of September 2024. He noted that this trend of disinflation is broad-based, with core inflation also experiencing a significant decline.
Ahmad highlighted improvements in the external account, stating that despite increased imports and the normalization of profit repatriation by foreign investors, the external current deficit has narrowed.
This is primarily due to strong growth in exports and remittances. As a result, SBP’s foreign exchange reserves have risen from $3.1 billion in January 2023 to $11 billion as of October 11, 2024, with a target of reaching $13 billion by June 2025.
Looking ahead, Ahmad stressed the importance of a structural reform agenda supported by partnerships under the new IMF program.
The SBP’s strategic plan for 2024-2028 aims to prioritize price stability, increase FX reserves, and develop an innovative digital financial services ecosystem, enhancing the overall efficiency and stability of Pakistan’s financial system.
