ISLAMABAD: Despite ongoing regional conflict and global economic uncertainty, Governor State Bank of Pakistan (SBP) Jameel Ahmad on Wednesday expressed confidence that the country would achieve economic growth of 3.75-4.75 percent and keep inflation within the 5-7 percent range during the current fiscal year.
Briefing the Senate Standing Committee on Finance, the SBP governor said Pakistan’s external debt and liabilities have swelled to USD138 billion — including USD103 billion in public external debt. He also admitted that exports have declined by 7 percent.
He acknowledged that the central bank bought USD24 billion from the market during the last three years, which helped stabilise the exchange rate and strengthen external buffers. He emphasised that the reserves were not built through additional external borrowing.
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He said Pakistan’s external debt increased from USD55 billion in 2015 to USD103 billion in 2022, but noted that there has been no increase in external debt over the past four years. Total external debt and liabilities currently stand at USD138 billion, which increased by around USD7 billion.
Pakistan’s foreign exchange reserves have reached USD16.2 billion and are projected to rise to USD18 billion by June and further to USD20 billion by December 2026. He warned that international oil prices could climb to around USD100 per barrel if regional conflicts persist for a prolonged period.
However, he maintained that the current account deficit would remain contained at 0–1 percent of GDP even in the event of higher petroleum prices. Workers’ remittances are expected to reach USD42 billion this fiscal year, providing continued support to the external account, he added.
The committee, which met under the chairmanship of Senator Saleem Mandviwalla, was also briefed on qualitative measures undertaken by the SBP to stabilise reserves and manage public debt. Expressing concern over declining exports, the committee chairman urged the government to explore untapped markets to boost export growth. The committee was further briefed on the Women Inclusive Finance initiative.
Officials said the allocated amount has been fully disbursed to enhance women’s access to credit and promote entrepreneurship. However, the chairman directed authorities to submit bank-wise and province-wise data following reports of difficulties faced by women in accessing credit facilities. The meeting concluded with directions for follow-up on the issues discussed.
Copyright Business Recorder, 2026
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