SBP Governor Highlights Pakistan’s Economic Resilience in Meetings with Global Investors

State Bank of Pakistan (SBP) Governor Jameel Ahmad has highlighted Pakistan’s improving macroeconomic conditions and economic outlook during meetings with international investors in Bangkok, Thailand.

The meetings took place alongside the IMF-World Bank Annual Meetings from October 12 to 17. Senior executives from major global financial institutions participated, including JPMorgan, Citibank, Jefferies, Deutsche Bank, Barclays, Bank of America, MSCI, Standard Chartered and Mitsubishi UFJ Financial Group.

The governor also met bilateral and multilateral partners, representatives of other central banks and international credit rating agencies.

Inflation Declines as Economic Growth Recovers

Ahmad said prudent macroeconomic policies and structural reforms had strengthened Pakistan’s ability to withstand domestic and external shocks.

According to the SBP, inflation fell sharply from elevated levels in FY23 to almost within the target range in FY26. This improvement came despite a significant oil price shock.

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Pakistan’s real GDP growth also recovered after contracting in FY23. The economy recorded 3.7% growth in FY26. The SBP projects growth between 3.5% and 4.5% in FY27.

Foreign Exchange Reserves Reach $21.5 Billion

Pakistan has also strengthened its foreign exchange position, according to the central bank.

Official foreign exchange reserves rose from less than $3 billion in February 2023 to $21.5 billion on October 9, 2026. Meanwhile, the SBP reduced its forward liabilities from more than $5.7 billion to less than $1 billion.

The central bank attributed much of the improvement to its foreign exchange purchases. An almost balanced current account in FY26 helped facilitate these purchases, while the country’s external debt stock increased only marginally over the past three years.

SBP reforms targeting exchange companies and encouraging formal remittance channels have also improved liquidity in the interbank foreign exchange market.

The central bank expects further foreign exchange purchases in FY27. It projects the current account deficit will remain between 0% and 1% of GDP.

Fiscal Position and IMF Programme Progress

Ahmad also highlighted improvements in Pakistan’s fiscal position. The country recorded its third consecutive annual primary fiscal surplus in FY26.

As a result, the public debt-to-GDP ratio has continued to decline, according to the SBP.

The governor further confirmed that Pakistan had reached a staff-level agreement with the International Monetary Fund (IMF) on reviews under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

He said continued reforms had improved investor confidence and contributed to upgrades in Pakistan’s sovereign credit ratings. These developments have also helped the country regain access to international capital markets despite challenging global conditions.

SBP Reaffirms Commitment to Economic Stability

Ahmad said Pakistan’s economic fundamentals remained strong and credited the country’s policy mix with cushioning the impact of multiple shocks over the past three years.

He acknowledged that ongoing geopolitical developments continued to pose risks. However, he said Pakistan was now better positioned to withstand external pressures than during previous periods of economic stress.

The governor reaffirmed the SBP’s commitment to preserving macroeconomic stability, strengthening foreign exchange buffers and advancing structural reforms.

He said these efforts remained essential to achieving sustainable economic growth and maintaining confidence among international investors.