State Bank of Pakistan (SBP) Governor Jameel Ahmad has raised concerns about rising inflation in the coming months. While speaking at the launch of Pakistan Literacy Week in Karachi, he noted that inflation fell to a historic low of 0.7% in March 2025. However, he cautioned that this trend may not last, with a potential reversal expected next month.
Ahmad emphasized that despite the recent decline in inflation, an increase is likely. He pointed to past monetary tightening and import restrictions that helped stabilize the economy. In 2022, Pakistan faced significant challenges, including rapidly rising inflation, depleted foreign reserves, and a depreciating rupee.
To combat these issues, the SBP implemented aggressive policy measures. These included raising interest rates and tightening import regulations. As a result, the gap between the interbank and open market exchange rates narrowed. Ahmad noted that these actions contributed to restoring some economic stability.
Regarding the country’s fiscal health, Ahmad reported that Pakistan’s current account has turned from a deficit to a surplus. He specified that the external payment obligations for FY25 are $26 billion, with $16 billion set to be refinanced. Additionally, he projected that GDP growth could range from 2.5% to 3.5% by the end of FY25. If the agricultural sector performs well, growth could even reach 4.2%.