Pakistan’s economy is better prepared to handle external shocks, State Bank of Pakistan Governor Jameel Ahmad told international investors. He highlighted rising foreign exchange reserves, lower inflation and recovering economic growth. According to the central bank, these improvements reflect sustained economic policies and structural reforms.
Speaking at meetings during the IMF-World Bank Annual Meetings in Bangkok, Thailand, Ahmad discussed Pakistan’s economic outlook with global financial institutions. Participants included representatives from JPMorgan, Citibank, Barclays, Deutsche Bank and other major financial groups. He also met international partners, central banks and credit rating agencies.
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Pakistan’s inflation has declined from high levels in fiscal year 2023 to near the target range in FY26. This improvement came despite a significant increase in oil prices. Meanwhile, economic growth recovered after contracting in FY23, reaching 3.7% in FY26. The SBP expects growth between 3.5% and 4.5% during FY27.
Foreign exchange reserves have also increased significantly in recent years. Reserves stood at $21.5 billion on October 9, 2026, compared with less than $3 billion in February 2023. Additionally, the central bank reduced its forward liabilities from over $5.7 billion to below $1 billion. The SBP attributed much of this progress to its foreign exchange purchases.
According to the central bank, regulatory changes have improved foreign exchange market liquidity. These measures include reforms for exchange companies and efforts to channel remittances through formal banking systems. Pakistan’s current account remained almost balanced in FY26, supporting reserve accumulation. For FY27, the SBP expects the current account deficit to remain between zero and one percent of GDP.
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Pakistan’s fiscal position has improved, with the primary balance recording its third consecutive annual surplus in FY26. Consequently, the public debt-to-GDP ratio has continued to decline. Ahmad also confirmed a staff-level agreement with the International Monetary Fund on reviews under two financing programmes. He said continued reforms had supported investor confidence and sovereign credit rating upgrades.
Despite global uncertainty and geopolitical tensions, Ahmad said Pakistan could manage external pressures better than before. The SBP plans to protect economic stability, strengthen foreign exchange reserves and continue structural reforms. The central bank also expects further foreign exchange purchases, while supporting sustainable economic growth over time.