State Bank of Pakistan Governor Jameel Ahmad said the country’s economy will remain in recovery and stabilisation for the next two years. He emphasized that Pakistan will avoid pursuing unsustainable high growth under current conditions. Ahmad said the government and SBP policies will decide if the ongoing $7 billion IMF loan program will be Pakistan’s last.
The IMF Extended Fund Facility is set to conclude in September–October 2027, marking Pakistan’s 24th IMF program since 1958. Ahmad noted the domestic economy has steadily improved over the past three years, setting a foundation for sustainable growth. He stressed that the SBP will focus on maintaining stabilisation momentum throughout the next two years.
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Ahmad projected no balance of payment issues will arise and the fiscal year will end in good condition despite rising import bills. Foreign debt repayments are expected to be made on time, while FX reserves are projected to grow. He also said the current account deficit would remain manageable at around 0.5% of GDP, with inflation targeted between 5-7%.
Workers’ remittances are expected to rise to $42 billion in FY26 from $38.3 billion in FY25, which will support foreign exchange reserves. Ahmad recalled that the SBP had sold $8 billion in 2021-22 to support unsustainable growth, causing a record current account deficit of 4.7% of GDP and multi-decade high inflation of 38% in May 2023. He stressed that past mistakes would not be repeated.
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The governor added that high growth of 6% is possible, but only through gradual and sustainable measures. He reaffirmed the SBP’s commitment to maintaining economic stability and avoiding reckless depletion of FX reserves, ensuring long-term resilience for Pakistan’s economy.