SBP Governor assures sufficient dollar reserves

January 09, 2025 (MLN): Pakistan has sufficient dollars to meet the demand of foreign investors and companies, the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad assured this during a media briefing today.

In 2023, the country paid $330 million to foreign investors and companies for dividends and profits, and this amount increased to $2.2 billion in 2024, he informed.

With regard to the policy rate, the Governor shared that the SBP intends to reduce the policy rate in phases to ease economic pressures.

He further shared that the inflation target for the current fiscal year has been set at 5% to 7%.

The Governor expressed confidence that improvements in economic indicators will be achieved if inflation remains under control.

He also expressed optimism regarding Pakistan’s current account, projecting that it will remain in surplus by December.

He further noted that remittances are stabilizing and are expected to reach $35bn for the fiscal year.

Though exports are improving, the Governor urged the need to further increase them for stronger economic performance.

The Governor assured that Pakistan's foreign debt remains on par with 2022 levels, standing at $100.8bn.

An increase of $500mn in foreign debt was attributed to debt revaluation, but overall, the country’s foreign debt position has significantly improved.

He emphasized the importance of managing external account challenges for economic growth, particularly the balance of payments, which continues to be the most significant issue.

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