SBP Governor stresses reforms key to prosperous Pakistan

August 14, 2026 (MLN): The State Bank of Pakistan (SBP) has stressed that the central bank's focus going forward will remain on price stability, policy reforms, and creating a conducive environment for higher productivity, export growth, and job creation, emphasising that these priorities are essential for transforming economic stability into sustainable development and laying the foundation for a stronger, more prosperous Pakistan.

These remarks were made by SBP Governor Jameel Ahmad while addressing a flag-hoisting ceremony held at SBP Karachi to mark Pakistan's 79th Independence Day, where he noted that the economy had made important progress towards stability over the past year and was continuing to move from stabilisation towards sustainable growth, according to a press release issued.

The Governor highlighted that prudent fiscal and monetary policies had underpinned price stability, with average inflation during FY26 recorded at 7.1%.

He maintained that SBP's current monetary policy stance remains appropriate to keep inflation within the 5-7% medium-term target while leaving adequate room for economic activity, investment, and job creation.

He added that these policies had also supported economic growth, which stood at 3.7% in FY26 and is projected to strengthen further to between 3.5% and 4.5% in FY27.

On the external front, the Governor pointed out that record remittances from overseas Pakistanis, which crossed $41bn in FY26 and are projected to reach $44bn in FY27, reflected continued confidence in the country's economic trajectory.

He explained that rising remittances, along with a low current account deficit, had helped lift foreign exchange reserves to $18.4bn by end-FY26, with reserves expected to exceed $21bn during FY27.

The Governor also emphasized  steps taken by SBP over the past year to strengthen and modernise the financial system.

He noted that the successful rollout of PRISM+ had brought the country's payment infrastructure closer to international standards, making large-value payments and settlements faster, safer, and more efficient.

He observed that SBP's push for digital payments had contributed to a sharp rise in retail digital transactions, which climbed from around 10bn to 12bn over the past year, describing it as a reflection of both greater technology adoption and progress towards a more documented and transparent economy.

On financial inclusion, the Governor affirmed that SBP remains committed to ensuring all segments of society have access to the formal financial system, citing the launch of InvestPak to provide the public with convenient, secure, and transparent investment opportunities.

He also cited SBP's continued push on Islamic banking, green finance, cybersecurity, and financial technology to keep the financial system secure, resilient, and future-ready.

The Governor stressed that economic self-reliance, strong institutions, rule of law, and national unity remain essential to the true spirit of independence, adding that while significant progress has been made, challenges remain and require continued diligence and resolve.

The Governor lauded the hard work, commitment, and professional dedication of SBP officers and employees, crediting the progress achieved during the past year to their collective effort.

The ceremony concluded with SBP reaffirming its commitment to playing its role in promoting sustainable economic development, financial stability, and public welfare.

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