State Bank of Pakistan (SBP) Governor Jameel Ahmad has said Pakistan’s current account deficit is expected to remain between 0 and 1 percent of gross domestic product (GDP), as the country’s economic fundamentals continue to improve following a difficult period of adjustment.
Addressing the annual convocation ceremony of the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan), Ahmad said Pakistan had made significant progress since 2022 despite severe global and regional shocks.
He noted that inflation remained close to the central bank’s target range during fiscal year 2026 (FY26). Although inflation has risen since then, it is expected to gradually ease toward the target range, supported by prudent monetary tightening.
Real GDP growth has also recovered from a contraction in FY23 to 3.7 percent in FY26, with the central bank expecting further improvement in the ongoing fiscal year.
The governor said these gains and the economy’s growing resilience were being recognized by international credit rating agencies, multilateral partners, and foreign investors.
Decisive Policies Helped Restore Stability
Reflecting on the economic adjustments made during FY22 and FY23, Ahmad emphasized that timely action, fiscal discipline, and forward-looking, evidence-based policymaking had helped strengthen Pakistan’s economic resilience.
He said raising the policy rate and maintaining it for almost a year, alongside temporary measures to manage non-debt foreign exchange outflows, had been necessary to restore macroeconomic stability and avert a deeper external financing and debt crisis.
Ahmad stressed that lasting economic progress could not be achieved through short-term fixes at the expense of long-term stability.
He added that maintaining a positive forward-looking real policy rate had helped bring inflation down from more than 30 percent to within the medium-term target range.
Meanwhile, risk-based supervision had strengthened the proactive identification of financial stability risks. Financial sector adequacy and performance indicators had also improved despite the period of elevated policy rates.
Governor Urges Graduates to Prioritize Evidence and Ethics
Addressing the graduating students, Ahmad encouraged them to apply the skills and knowledge gained through their studies to Pakistan’s economic development.
“When faced with such decision, let evidence guide your judgment, let professional ethics define your conduct, and let a long-term commitment to Pakistan’s sustainable and inclusive development inform your action,” he said.
The governor underscored the accounting and finance profession’s role in strengthening institutions, promoting accountability, and supporting informed decision-making.
He also highlighted the profession’s contribution to sound governance, responsible use of public resources, and productive investment. Ahmad congratulated the graduates and wished them success in their future endeavors.
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