KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Friday that the country’s economy has witnessed a strong recovery over the past three years, marked by a sharp improvement in external buffers and steady gains in foreign inflows.
He said foreign exchange reserves have increased from a critically low level of around USD 3 billion to USD 17 billion, while remittances are expected to cross a record USD 41 billion by the end of June. He added that Pakistan’s external account has returned to stability despite ongoing global uncertainty and heightened geopolitical tensions in the Middle East.
Addressing an interactive session during his visit to Karachi Chamber of Commerce and Industry (KCCI), the Governor SBP said the economic situation today was vastly different from the crisis-like conditions witnessed in 2023 when imports had sharply contracted and businesses were struggling to open Letters of Credit (LCs).
“Today, average monthly imports have crossed USD 5 billion compared to nearly USD 3 billion three years ago, while the LC situation has improved substantially,” he stated.
He mentioned that said the SBP’s reforms, coupled with stringent action against hundi and hawala, had played a vital role in stabilizing the economy and strengthening foreign exchange reserves.
“Pakistan’s external account is now in a much stronger and healthier position,” he remarked.
He acknowledged that global uncertainties and oil prices could impact growth during the final quarter of FY26.
Warning of temporary inflationary pressures, Jameel Ahmad said inflation could exceed 7 percent during the last quarter of FY26; however, the SBP remained committed to maintaining inflation within the medium-term target range of 5 to 7 percent.
He expressed confidence that inflation would gradually decline going forward.
Highlighting the State Bank’s renewed focus on Small and Medium Enterprises (SMEs), he said regulations had been simplified, procedural hurdles reduced and banks directed to formulate dedicated SME growth plans.
He revealed that SME financing surged from Rs491 billion in June 2024 to Rs882 billion by December 2025, while the target was to increase it to Rs1.5 trillion by June 2028.
Copyright Business Recorder, 2026
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