Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, has revealed that inflation in the country has dropped to its lowest point in six decades, marking a significant milestone for Pakistan’s economic outlook.
While speaking at an event, as reported by Dawn News, the central bank chief highlighted the government’s extensive efforts aimed at stabilizing the economy. He noted that a substantial increase in workers’ remittances has led to a notable improvement in the country’s foreign exchange reserves.
“In a major development, the policy rate has been reduced from 22% to 11%, reflecting a 50% cut in interest rates,” said Ahmed, adding that economic activity is showing signs of revival in the ongoing fiscal year.
He also emphasized that Pakistan’s current account has remained in surplus, further indicating a positive trend in the country’s financial indicators.
It’s worth noting that earlier, the International Monetary Fund (IMF) had projected in its country staff report that Pakistan’s foreign exchange reserves are expected to stand at $13.92 billion by the end of the current fiscal year. Looking ahead, the reserves are forecasted to reach $17.68 billion in FY2025–26.
The IMF report also suggested that Pakistan’s economic growth may fall short of the government’s target for the current fiscal year, with a projected growth rate of 2.6%. However, the Fund anticipates stronger economic growth in the next fiscal cycle.
