The State Bank of Pakistan reported that Governor Jameel Ahmad met senior executives from global financial institutions and major credit rating agencies on the sidelines of the International Monetary Fund and World Bank Annual Meetings in Washington, D.C., and outlined an improving macroeconomic outlook for Pakistan. He attributed the stabilization to prudent monetary policy and continued fiscal consolidation, and framed the economy as moving into a phase of revived investment and growth. He cited headline inflation falling to 5.6% in September 2025 and core inflation declining from above 22% to below 8%, with headline inflation expected to stabilize within a 5–7% target range in the medium term despite the impact of recent floods. On the external position, he described qualitative and quantitative improvements in foreign exchange buffers, linked to reforms affecting exchange companies and efforts to channel remittances through formal routes, and said this stability enabled the central bank to purchase USD 20 billion from the interbank market over the past three years, contributing to foreign exchange reserves rising around fivefold since February 2023 while forward liabilities fell significantly; he also said public sector external debt had increased only marginally since June 2022. On activity, he pointed to FY25 growth of 3% and projected FY26 real GDP growth in a 3.25–4.25% range and higher than FY25, alongside progress under the SBP’s Vision 2028 strategic plan on financial stability and inclusion, including for small and medium enterprises and women. The SBP set a foreign exchange reserve target of USD 17.5 billion by June 2026.

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