SBP Governor credits timely policy action for recovery

October 29, 2026 (MLN): Pakistan’s economic fundamentals have strengthened markedly since 2022 despite severe global and regional shocks, with the State Bank of Pakistan (SBP) expecting inflation to ease gradually toward its target range, the current account deficit to stay within 0 to 1 % of GDP, and real GDP growth to pick up further in the ongoing fiscal year after recovering to 3.7 % in FY26 from a contraction in FY23.

SBP Governor Jameel Ahmad outlined the recovery while addressing the annual convocation ceremony of the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), where he spoke to the graduating batch of accounting and finance professionals, according to a press release issued.

He voiced confidence that the graduates would put their skills, knowledge, hard work and commitment to excellence to use in shaping the country’s future economic landscape.

The Governor acknowledged that challenges remain, but noted that the country has come a long way in the last four years.

Supply shocks, he said, were contained in their effect on the domestic economy. Inflation stayed close to the target range in FY26 and, although it has risen since then, the central bank projects it to ease gradually, helped by prudent monetary tightening.

The external account remains stable, he added, and the improvement is being recognized by international credit rating agencies, multilateral partners and foreign investors.

Looking back at the adjustments of FY22 and FY23, he credited timely and decisive action, fiscal discipline and forward-looking, evidence-based policymaking for building economic resilience.

Raising the policy rate and holding it there for nearly a year, along with temporary steps to manage non-debt foreign exchange outflows, was necessary to restore macroeconomic stability and avert a deeper external financing and debt crisis, he noted.

Lasting progress, he stressed, cannot come from short-term fixes at the cost of long-term stability.

The Governor added that keeping the forward-looking real policy rate positive helped bring inflation down from above 30 % to within the medium-term target range. Risk-based supervision, meanwhile, has improved the early identification of financial stability risks, and financial sector adequacy and performance indicators have strengthened even during the period of elevated policy rates.

He urged the graduates to let evidence guide their judgment, professional ethics shape their conduct and a long-term commitment to Pakistan’s sustainable and inclusive development drive their actions when faced with difficult decisions.

Concluding his address, the Governor highlighted the role of the accounting and finance profession in strengthening institutions, promoting accountability and supporting informed decision-making.

He pointed to its contribution to sound governance, responsible use of public resources and productive investment, congratulated the graduates and wished them success.

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