The State Bank of Pakistan (SBP) is prioritizing economic stability and shunning aggressive policy rate cuts, despite Prime Minister's push for easing, Governor Jameel Ahmad announced.
Pakistan has navigated its worst economic crisis phase, entering a stable period with better external balances, inflation at 5-7%, and recovering reserves expected to hold for two years.
Focus on Sustainable Growth
SBP completed initial recovery steps and now backs development finance for productive sectors, cautioning that sharp cuts risk reigniting inflation and eroding gains.
Progress includes current account surplus in 2025 (from 4.7% GDP deficit in 2022), steady remittances, $6B monthly imports, 5-6% non-food export growth (offset by 47% rice drop in H1 FY26). Government aids exporters via lower tariffs, Export Finance tweaks, and "Blue Passports."
Ahmad noted the $7B IMF EFF ends late 2027 if fiscal discipline holds; lower rates cut SBP's PKR2.4T transfer to government (down to ~PKR2T this year).
