KARACHI (Web Desk) - State Bank Governor Jameel Ahmad has said Pakistan’s economic conditions have improved significantly over the past three years, with the economy gradually moving towards stability despite persistent challenges.
Addressing a gathering at the Karachi Chamber of Commerce, Jameel Ahmad said global economic pressure remained due to the Middle East conflict, but the situation regarding opening letters of credit (LCs) had improved considerably compared to 2023.
He stated that Pakistan’s average monthly imports had now crossed $5 billion, compared to nearly $3 billion three years ago.
The State Bank governor said reforms introduced by the central bank and measures against hawala and hundi had contributed to a notable rise in remittances.
According to him, Pakistan received $38 billion in remittances during the previous fiscal year, while inflows were expected to exceed $41 billion in the current fiscal year.
Jameel Ahmad said the current account remained in surplus during the first nine months of the ongoing fiscal year, although fluctuations in global crude oil prices could affect the remaining months.
He added that the State Bank expected the overall current account deficit to remain between 0 and 1 per cent, which would be among the lowest levels in recent years.
The governor revealed that Pakistan’s foreign exchange reserves had increased from $3 billion to $17 billion over the past three years.
He further said the combined external debt of the government and State Bank stood at around $102 billion four years ago and was estimated at nearly $103 billion by March 2026, indicating relative stability in external liabilities.
Jameel Ahmad noted that Pakistan had been forced to take short-term loans during difficult economic conditions, but those obligations had been repaid over the past three years.
He said the increase in foreign exchange reserves had improved Pakistan’s debt repayment capacity and strengthened the country’s external account position.
The State Bank governor warned that restoring economic stability took time once conditions became unstable.
He said inflation could temporarily rise to 7 per cent, but was expected to decline during the second half of next year.
According to Jameel Ahmad, economic growth during the first nine months of the current fiscal year remained at 3.7 per cent.
He added that banks had been directed to prepare separate strategies for promoting the small and medium enterprise (SME) sector, while efforts continued to reduce reliance on external debt despite a rise in domestic borrowing.