SBP Governor Highlights Economic Reforms and Stability Gains

At SBP’s 78th Independence Day ceremony

Governor outlines inflation control, record

reserves, and current account surplus

Staff Reporter

Karachi: The State Bank of Pakistan (SBP) marked the 78th Independence Day with a flag-hoisting ceremony at its Karachi headquarters, led by Governor Jameel Ahmad. Addressing the gathering, the governor emphasized the importance of economic resilience, structural reforms, and financial innovation to ensure long-term national prosperity.

Mr. Ahmad highlighted Pakistan’s recent economic turnaround, noting that inflation had surged to 38% in May 2023, prompting SBP to take decisive monetary measures. These policies brought inflation down to 11.8% by May 2024 and further to a historic low of 3.2% in June 2025. In response, the policy rate was gradually reduced from 22% to 11% in seven steps since June 2024. He reaffirmed that SBP’s monetary policy will continue to target 5–7% inflation, aiming to sustain price stability and unlock broader economic opportunities.

On the external front, Governor Ahmad reported significant progress: foreign exchange reserves have nearly tripled from USD 4.4 billion at the end of FY23 to USD 14.5 billion by FY25, achieved without increasing foreign debt. Pakistan posted its first current account surplus in 14 years at USD 2.1 billion and recorded all-time high remittances of USD 38.3 billion from overseas Pakistanis. These gains, coupled with positive credit rating upgrades, are expected to enhance foreign investment prospects.

Governor Ahmad also stressed the role of digital innovation in financial inclusion, announcing that Raast, Pakistan’s instant payment system, will become a separate subsidiary to expand its services. SBP has also modernized its payment infrastructure and introduced a streamlined account-opening framework, enabling citizens—especially women—to open accounts without visiting bank branches.

The Independence Day event featured patriotic performances by students of Zindagi Trust School and the unveiling of a children’s art exhibition from Ida Rieu School for the Blind and Deaf, themed “Beauty of Pakistan”. Other exhibits included “Echoes of Freedom through Archival Lens” and “Wings of Pakistan”, reflecting SBP’s commitment to cultural and social inclusivity.