ISLAMABAD: State Bank of Pakistan (SBP) Governor Jameel Ahmad on Wednesday urged businesses to expand into new markets and invest in innovation, warning that Pakistan’s existing growth model cannot support a fast-growing population of 250 million. He made the remarks while addressing a two-day ‘Dialogue on the Economy’ organised by the Pakistan Business Council (PBC).
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Mr Ahmad said Pakistan must evolve from operating at the margins of the global economy to becoming an active participant. He noted that the country currently has a window of opportunity to deepen engagement with key partners such as the US, China and Middle Eastern economies. However, he cautioned that this opportunity requires a shift to sustainable, outward-oriented economic strategies.
He stressed the need to move beyond short-term stabilisation efforts toward a long-lasting and resilient growth model. Speaking on the ‘State of Economy and Monetary Policy,’ he said policymakers and businesses must adopt long-term perspectives on regulations, planning and investment to ensure future stability.
Pakistan stands at an inflection point, says Governor #SBP Jameel Ahmad at session of Pakistan Business Council. He urged private sector to embrace global competitiveness rather than depend on subsidies or domestic market protection.https://t.co/d3EeYtoaD3
— SBP (@StateBank_Pak) November 26, 2025
The governor underscored that macroeconomic discipline has improved through coordinated monetary and fiscal policies. He said the SBP now relies on eight-quarter projections to guide policy decisions, avoiding the premature easing that has historically undermined stability. Inflation, he noted, has eased in line with forecasts and is expected to remain within the 5-7pc target range over the medium term.
Highlighting improvements in external buffers, Mr Ahmad said reserve buildup now reflects strategic FX purchases rather than debt-driven inflows. Since 2022, the external debt-to-GDP ratio has declined from 31pc to 26pc, while SBP reserves have risen from $2.9bn to around $14.5bn.
To support Pakistan’s exports, SBP makes Rs. 200 billion additional credit available to exporters, doubles limit to Rs. 5 billion to set up export projects, and opens up new export sectors to avail SBP’s credit refinance schemes. pic.twitter.com/eJKCcz7pmE
— SBP (@StateBank_Pak) January 30, 2020
He urged the private sector to modernise production, integrate into global value chains and prioritise competitiveness instead of relying on substitutes. Long-term growth, he said, is impossible if firms focus solely on short-term profit margins. The SBP and government, he assured, will continue structural reforms and fiscal strengthening to support sustained economic progress.
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Mr Ahmad added that development, joint ventures, technology transfers and global partnerships will be essential for improving productivity. He noted that despite economic challenges, the government has achieved three consecutive years of fiscal consolidation, surpassing its primary surplus targets.