Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has cautioned that inflation may rise again in the coming months, even though it temporarily dropped to a historic low of 0.7% in March 2025.
Speaking at the launch of Pakistan Literacy Week in Karachi, Ahmad attributed the recent relief to earlier monetary tightening and import restrictions, which helped stabilize the economy. However, he warned that these effects may reverse starting next month.
He highlighted the economic challenges faced in 2022, including soaring inflation, a sharp depreciation of the rupee (up to 50%), and foreign reserves falling dangerously low.
In response, the SBP implemented aggressive interest rate hikes and import curbs, which also helped reduce the exchange rate gap between the interbank and open markets.
Ahmad shared positive updates, noting that Pakistan’s current account had moved from deficit to surplus due to disciplined economic measures. He also addressed the external payment obligations for FY25, stating that $16 billion out of $26 billion would be rolled over or refinanced, and $8 billion had already been paid.
In terms of economic growth, the SBP governor projected a GDP increase of 2.5% to 3.5%, possibly reaching 4.2% if the agricultural sector performs well.
