Evidence-Based Policies Key to Pakistan’s Economic Stability: SBP Governor

Jameel Ahmad highlights Pakistan’s economic recovery since 2022, gradual GDP growth and the role of fiscal discipline in maintaining stability.

State Bank of Pakistan (SBP) Governor Jameel Ahmad has stressed the importance of decisive action, fiscal discipline and evidence-based policymaking to achieve lasting economic stability.

Addressing the annual convocation of the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), the governor said Pakistan’s economic fundamentals had improved since 2022 despite significant global and regional challenges.

He urged graduating accounting and finance professionals to use their knowledge responsibly and contribute to Pakistan’s sustainable economic development.

Pakistan’s Economic Indicators Show Recovery

The SBP governor said Pakistan had made progress in managing economic challenges and containing the impact of major supply shocks.

According to his address, inflation remained close to the central bank’s target range during fiscal year 2025-26 (FY26). Although inflation has risen since then, he said it was projected to gradually move towards the target range, supported by monetary policy measures.

He also noted that the external account remained stable, with the current account deficit expected to stay within 0% to 1% of gross domestic product (GDP).

Pakistan’s real GDP growth recovered from a contraction in FY23 to 3.7% in FY26. The governor said growth was expected to increase further in the current fiscal year.

He added that improvements in economic fundamentals and greater resilience had attracted recognition from international credit rating agencies, multilateral partners and foreign investors.

Fiscal Discipline and Monetary Policy Remain Important

Reflecting on the economic adjustments made during FY22 and FY23, Ahmad said timely decisions and forward-looking policies had helped strengthen Pakistan’s economic resilience.

He explained that raising the policy rate and maintaining it for almost a year, alongside temporary measures to manage non-debt foreign exchange outflows, had been necessary to restore macroeconomic stability and reduce the risk of a deeper external financing and debt crisis.

The governor emphasised that lasting economic progress required long-term planning rather than short-term measures that could undermine stability.

He also said maintaining a positive forward-looking real policy rate had helped bring inflation down from above 30% towards the medium-term target range.

According to Ahmad, risk-based supervision had improved the early identification of financial stability risks. He added that financial sector adequacy and performance indicators had also improved despite a prolonged period of elevated interest rates.

Governor Urges Graduates to Follow Evidence and Ethics

Addressing the graduates, Ahmad encouraged them to rely on evidence when making professional decisions and to maintain high ethical standards.

He said their commitment to hard work and excellence could help shape Pakistan’s future economic landscape.

The governor also highlighted the importance of accounting and finance professionals in strengthening institutions, promoting accountability and supporting informed decision-making.

He said the profession played an important role in sound governance, the responsible use of public resources and productive investment.

Ahmad congratulated the graduating students and wished them success in their future careers, urging them to contribute to Pakistan’s sustainable and inclusive development.