Governor State Bank praises resilience of Pakistan's economy
Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, stated on Monday
that Pakistan's economy has successfully emerged from a difficult period,
showing signs of sustainable recovery and stability.
Speaking at the launch of the Women Entrepreneurs Finance Code—an initiative
organized by the SBP in collaboration with the Asian Development Bank (ADB)—Ahmad
emphasized the importance of maintaining economic stability and avoiding the
policy missteps of the past.
“The economy faced considerable challenges in recent years, but we are now
out of that difficult phase,” said the Governor, highlighting the country's
improving macroeconomic indicators.
A Shift Toward Medium-Term Transformation
Ahmad noted that both the SBP and the government are committed to
transitioning from hard-earned stability to medium-term economic transformation.
This is being driven by a prudent monetary policy, a market-aligned exchange
rate, fiscal consolidation, and strengthening debt dynamics—all of which are
helping build fiscal and external buffers to support sustainable growth.
He remarked that average headline inflation has declined to 4.5% in FY2025,
the lowest in nine years, with expectations that inflation will stabilize
within the target range of 5–7% under a coordinated mix of monetary and fiscal
policies.
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Foreign Exchange & Fiscal Outlook
Ahmad also pointed to the stability of the foreign exchange market,
supported by a strong external account and significant growth in SBP’s reserves,
now nearly five times higher than at the start of 2023. The current account
balance is projected to remain supportive, bolstered by robust remittances and resilient
exports, even as imports increase with the ongoing recovery.
He further highlighted that fiscal policy has complemented monetary
tightening. Pakistan achieved a primary surplus for the second consecutive year,
with both tax and non-tax revenues recording significant growth while
expenditures remained contained. The government is targeting an even higher
primary surplus for FY2026.
“Unlike the boom-bust cycles of the past, our current approach prioritizes long-term
economic growth over short-term, unsustainable gains,” Ahmad said.
Inclusive Growth & Women’s Empowerment
Stressing the need for inclusive growth, Ahmad underscored the vital role of
women entrepreneurs in driving sustainable development.
“Economic growth holds little meaning unless it is both sustainable and
inclusive. Women-led businesses are a powerful engine for progress,” he said,
adding that the SBP is committed to promoting WMSMEs (Women-led Micro, Small
& Medium Enterprises) as part of its broader financial inclusion agenda.
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He also acknowledged the ADB’s support in advancing women's financial
inclusion in Pakistan and implementing the Code.
SBP Initiatives & Global Collaboration
SBP Deputy Governor Saleemullah noted that the Bank has taken several
initiatives to embed gender equality into the financial sector through the National
Financial Inclusion Strategy (NFIS) and the landmark Banking on Equality Policy
(BOE).
Senior ADB official Christine Engstrom and Wendy Teleki, Head of the Women
Entrepreneurs Finance Initiative at the World Bank, also welcomed SBP's role as
a global signatory to the Code.
The event featured two panel discussions involving policymakers, financial
leaders, entrepreneurs, and civil society representatives, who shared
experiences and explored strategies to strengthen women's entrepreneurship in
Pakistan.
The launch was attended by national and international dignitaries, all
united in their support for advancing women’s economic empowerment across the
country.
Source: APP