Washington/IMF Meetings: Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has informed global investors and credit rating agencies that Pakistan’s macroeconomic indicators have shown faster-than-expected improvement, even as new external risks emerge from the ongoing Middle East conflict.
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He made these remarks during a series of high-level meetings with senior executives from leading global financial institutions, including JP Morgan, Barclays, Citibank, Jefferies, and Franklin Templeton, as well as representatives from Fitch, Moody’s, and S&P Global. The engagements were held on the sidelines of the IMF–World Bank Spring Meetings 2026.
According to the SBP, the Governor also held bilateral discussions with the leadership of the International Monetary Fund (IMF) and the World Bank Group, focusing on Pakistan’s ongoing economic reform agenda and external financing outlook.
Economic stabilization ahead of external shocks
Governor Ahmad highlighted that Pakistan had achieved significant macroeconomic stabilization prior to the recent escalation of tensions in the Middle East. He said a prudent mix of monetary and fiscal policies had helped bring inflation down to an average of 5.7 percent during the first nine months of the current fiscal year, within the targeted range.
He added that the external current account remained in surplus, while foreign exchange reserves improved to $16.4 billion, largely supported by SBP purchases from the interbank market. With continued inflows and official financing, reserves are expected to rise to around $18 billion by June 2026.
Growth recovery and policy stance
The SBP Governor said economic recovery is gradually strengthening, with real GDP growth accelerating to 3.8 percent in the first half of FY26 compared to 1.8 percent in the same period last year. He noted that Pakistan’s current macroeconomic position is significantly stronger than during previous global shocks, including the Russia–Ukraine conflict.
However, he cautioned that the economy now faces renewed challenges due to rising global energy prices and higher freight and insurance costs linked to geopolitical tensions in the Middle East.
He reaffirmed that both the SBP and the government remain committed to maintaining price stability, supported by a “prudently cautious” monetary policy stance with a significantly positive real interest rate, alongside primary fiscal surpluses and targeted austerity measures.
IMF programme and investor confidence
Governor Ahmad also referred to the staff-level agreement with the IMF under the Extended Fund Facility and the Resilience and Sustainability Facility reviews, describing it as a sign of continued reform momentum. He said recent credit rating affirmations from global agencies further validate Pakistan’s macroeconomic direction.
Engagement with diaspora and RDA inflows
During his visit, the SBP Governor also interacted with the Pakistani diaspora at a Remittances and Roshan Digital Account (RDA) roadshow. He highlighted that RDA inflows have exceeded $12.4 billion across more than 917,000 accounts.
He also announced enhancements to the RDA framework, including the inclusion of non-resident entities, aimed at broadening investment channels and further integrating Pakistan into global financial markets.
Conclusion
Governor Ahmad emphasized that while external uncertainties persist, Pakistan’s improved macroeconomic foundations, stronger buffers, and ongoing reform commitments place the economy in a better position to withstand global shocks and maintain stability.
