State Bank of Pakistan Governor Jameel Ahmad emphasized the need for decisive policies grounded in evidence and fiscal discipline to sustain economic stability, addressing the annual convocation of the Institute of Cost and Management Accountants of Pakistan. Reviewing Pakistan’s recovery since 2022, he highlighted improving growth and a stable external account, while noting that inflation had increased after remaining close to the target range in fiscal year 2026. Real GDP growth reached 3.7% in fiscal 2026, following a contraction in fiscal 2023, and is expected to rise further in the ongoing fiscal year. The current account deficit is expected to remain between 0% and 1% of GDP. Inflation is projected to ease gradually toward the target range, supported by prudent monetary tightening. Reflecting on adjustments during fiscal 2022 and 2023, Ahmad described policy rate increases and maintaining the rate for almost a year, alongside temporary measures to manage foreign exchange outflows unrelated to debt, as necessary to restore stability and avert a deeper external financing and debt crisis. He linked the earlier decline in inflation from above 30% to maintaining a positive real policy rate measured against expected inflation, and cautioned against quick fixes at the expense of lasting stability.
State Bank of Pakistan governor stresses decisive policies and fiscal discipline to sustain economic stability
In a convocation address, State Bank of Pakistan Governor Jameel Ahmad stressed fiscal discipline and policy decisions grounded in evidence as essential to sustaining Pakistan’s economic recovery. GDP growth reached 3.7% in fiscal 2026 and is expected to strengthen further, while the current account deficit is projected at 0% to 1% of GDP. Inflation has risen since fiscal 2026 but is expected to ease gradually toward the target range, supported by prudent monetary tightening.