SBP governor projects stronger FY growth, says recovery is broad-based

State Bank of Pakistan Governor Jameel Ahmad has said the country’s economic rebound is stronger and more wide-ranging than recent projections suggest, indicating growth could reach around 4.75% in the current fiscal year.

In written responses, he said the recovery is visible across sectors even though headline export numbers look weak, arguing that differences in forecasts can reflect timing and methodology. He pointed to the central bank’s revised FY growth range of 3.75% to 4.75% and said recent indicators support the view that the upturn is becoming more durable.

Ahmad noted that monetary conditions have eased after sizable policy-rate reductions since 2024, with the benchmark rate recently held at 10.5%. He said the full effect of earlier easing is still feeding through to activity while the policy framework remains focused on medium-term stability.

On the external account, he said the current account deficit is expected to stay contained, supported by strong remittances that help offset a wider trade gap and bolster reserves. He added that Pakistan is exploring diversified external financing options, including yuan-denominated “panda bonds,” and said structural reforms remain essential for sustaining growth and improving productivity over time.