Pakistan’s foreign exchange reserves are expected to reach $14 billion by the end of June, while economic growth is projected at around 3 per cent for the current fiscal year, according to State Bank of Pakistan (SBP) Governor Jameel Ahmad.
Speaking during meetings with senior executives from global financial and investment institutions — including JP Morgan, Standard Chartered, Deutsche Bank, Jefferies, and major credit rating agencies — Governor Ahmad outlined improvements in the country’s economic outlook. These discussions were held on the sidelines of the IMF–World Bank Spring Meetings in Washington, D.C.
In a statement issued on Saturday, the SBP said the Governor briefed participants on the progress Pakistan has made in stabilising its economy. He noted that tighter monetary policy and fiscal consolidation efforts had helped restore macroeconomic stability.
Governor Ahmad said headline inflation had fallen sharply over the past two years, dropping to 0.7 per cent in March 2025 — the lowest level in decades. Core inflation, which had previously exceeded 22 per cent, has also declined to single digits and is expected to ease further in the coming months. Inflation is forecast to stabilise within the central bank’s target range of 5 to 7 per cent.
On the external front, Ahmad said Pakistan’s foreign exchange buffers had improved significantly, both in terms of quantity and quality. The SBP’s reserves have more than tripled since their low point in February 2023, while forward liabilities have declined notably.
The Governor stressed that the reserve build-up had not come through additional external borrowing — a departure from previous trends. Instead, he said, public sector external debt has fallen both in absolute terms and as a share of GDP since June 2022. He attributed this improvement to the SBP’s strategy of strengthening the economy’s resilience against external shocks, particularly amid ongoing global trade uncertainties.
He explained that the central bank had managed to boost reserves through foreign exchange purchases supported by a surplus in the external current account.
Governor Ahmad reiterated that the SBP remains on track to raise reserves to $14 billion by June 2025.
Turning to broader economic performance, he said the stabilisation of economic conditions had helped the economy begin a gradual recovery, with GDP growth expected to reach around 3 per cent in FY25.
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