State Bank of Pakistan Governor Jameel Ahmad has said the current monetary policy stance is appropriate to keep inflation within the central bank’s medium-term target of 5-7 percent while allowing room for economic activity, investment and job creation.
The SBP kept its benchmark interest rate unchanged at 11.5 percent in July, citing inflation and external account risks linked to geopolitical tensions. Inflation eased to 9.2 percent in July from 11.07 percent in June, while average inflation stood at 7.1 percent in FY26.
Ahmad said Pakistan’s economy had made important progress towards stability over the past year, supported by prudent fiscal and monetary policies and greater economic discipline.
He said the country was now moving from economic stabilisation towards sustainable growth, with GDP growth reaching 3.7 percent in FY26. Growth is expected to remain between 3.5 and 4.5 percent in FY27.
The governor said record remittances had also strengthened the external sector, with inflows exceeding $41 billion in FY26 and expected to reach $44 billion in FY27. Foreign exchange reserves rose to $18.4 billion by the end of FY26 and are expected to exceed $21 billion during FY27.
Ahmad also highlighted the SBP’s efforts to modernise Pakistan’s financial system. He said the launch of PRISM+ had made large-value payments and settlements faster, safer and more efficient.
The governor said retail digital transactions increased from around 10 billion to 12 billion over the past year, reflecting greater adoption of digital payments and supporting a more documented and transparent economy.
He also highlighted the launch of InvestPak to provide the public with convenient and secure investment opportunities, along with continued efforts to promote Islamic banking, green finance, cybersecurity and financial technology.
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