Pakistan's economic progress stressed by SBP Governor at PSX event

April 14, 2025 (MLN): The significant progress made by Pakistan on the macroeconomic front was emphasized by the Governor of the State Bank of Pakistan (SBP), Mr. Jameel Ahmad, during his address at the gong ceremony at the Pakistan Stock Exchange (PSX).

Reflecting on the country's recent economic journey, Mr. Ahmad stated that Pakistan has successfully transitioned from a period of macroeconomic instability characterized by high inflation, low reserves, and fears of default.

He highlighted that the country has now moved into a phase of stable macroeconomic conditions, renewed confidence, and a recovery in economic growth.

He pointed to notable improvements across several economic indicators, signaling a much-needed revival, according to the press release issued today.

The Governor highlighted that inflation had decreased substantially, the external current account balance had turned into a surplus, foreign exchange buffers had been rebuilt, and public debt indicators had significantly improved over the past couple of years.

He also pointed to an all-time high in workers’ remittances, which reached $4.1 billion in March 2025.

This achievement was partly attributed to the efforts of the government and SBP in incentivizing the use of formal channels for inflows and the smooth functioning of the domestic FX market.

Total remittances for FY 25 are expected to reach around $38bn.

Mr. Ahmad further emphasized that with a sound macroeconomic base and renewed investor confidence, Pakistan is positioned to set the country on a trajectory toward broad-based, inclusive prosperity.

He noted that this stability was achieved through difficult policy decisions, and now the focus must shift toward sustainable growth.

The Governor stressed the importance of enhancing productivity and boosting exports as central components of Pakistan’s growth model, as export activity directly contributes to greater productivity, innovation, and foreign investment.

The Governor urged stakeholders to collaborate and commit to long-term strategies that ensure sustainable and inclusive growth.

While acknowledging the country’s recovery, Mr. Ahmad underscored the need for reforms to address structural issues and avoid boom-bust cycles and economic stagnation.

He reaffirmed the SBP’s commitment to creating a resilient and inclusive financial ecosystem, supported by an enabling regulatory environment, as a foundation for Pakistan’s economic prosperity.

Additionally, Mr. Ahmad highlighted the importance of financial literacy in achieving true financial inclusion.

He shared that the SBP is organizing the Pakistan Financial Literacy Week from April 14 to 18, with various activities planned across the country to engage different segments of society in financial literacy efforts.

He reaffirmed that enhancing financial inclusion remains a top strategic goal within the SBP’s Strategic Vision 2028, alongside building an innovative and inclusive digital financial ecosystem.

The Governor also outlined key initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, including efforts to increase financial inclusion from 64% to 75% by 2028, while reducing the gender gap in financial services from 34% to 25% by 2028.

Lastly, Mr. Ahmad expressed his appreciation to the PSX management for their ongoing efforts in providing a vital platform for the country’s capital market.

He emphasized the importance of the PSX in enabling corporations to raise capital and offering investors the opportunity for substantial returns on their savings.

Copyright Mettis Link News