SBP Governor credits timely policy action for recovery

State Bank of Pakistan Governor Jameel Ahmad said the economy had strengthened since 2022, with output returning to growth of 3.7% in FY26 after shrinking in FY23. Addressing ICMA Pakistan graduates, he said the central bank expects inflation to move gradually toward its target and the current account gap to remain between 0% and 1% of GDP, while growth is projected to improve further in the current fiscal year.

Ahmad attributed the recovery to timely policy decisions, fiscal restraint and evidence-led planning during the FY22 and FY23 adjustments, Mettis Global reported. He said tighter monetary settings helped bring inflation down from above 30% to within the medium-term target, while risk-based oversight strengthened the detection of threats to financial stability. The governor also cited improved financial-sector indicators and a stable external account, and said lasting progress requires protecting long-term stability rather than relying on temporary remedies.