KARACHI: State Bank of Pakistan Governor Jameel Ahmad has said that the country is continuing to move from economic stabilisation towards sustainable growth and will achieve up to 4.5 per cent GDP growth in FY27.

Addressing a gathering to commemorate the Independence Day with a flag-hoisting ceremony, Mr Ahmad said that the economy has made important progress towards stability during the past year, supported by greater economic discipline.

He said that prudent fiscal and monetary policies facilitated economic expansion of 3.7pc in FY26. GDP growth is expected to remain between 3.5 and 4.5pc in FY27, he hoped.

“This is an encouraging indication that the economy is continuing to move towards sustainable growth following a period of stabilisation,” said the governor.

Sees inflation ranging between 5pc and 7pc

Referring to developments in the external sector, Mr Ahmad said that overseas Pakistanis have expressed their confidence in the country’s economic progress through record remittances, which exceeded $41bn in FY26 and are ‘expected to reach $44bn in FY27.’

The increase in remittances and a low current account deficit are contributing to the improvement in the country’s foreign exchange reserves, which reached $18.4bn by the end of FY26.

“SBP reserves are expected to exceed $21bn during FY27,” he said.

Highlighting developments in price stability, the governor noted that average inflation during FY26 was 7.1pc. He said that SBP’s assessment is that the current monetary policy stance remains appropriate to maintain inflation within the 5-7pc medium-term target, while providing adequate room for economic activity, investment, and job creation.

Mr Ahmad also highlighted the steps taken by the central bank during the past year to strengthen and modernise the financial system. He said that the successful launch of PRISM+ has brought the country’s payment infrastructure closer to international standards by making large-value payments and settlements faster, safer, and more efficient.

He further noted that SBP’s measures to promote digital payments have contributed to a significant increase in the use of digital channels, with the number of retail digital transactions rising from around 10bn to 12bn in FY26. He said that the growth of digital payments is not only a reflection of greater technology adoption but also an important step towards a more documented, transparent, and efficient economy.

Emphasising the importance of financial inclusion, he said that SBP remains committed to ensuring that all segments of society have access to the formal financial system. In this regard, the SBP has launched InvestPak to facilitate convenient, secure, and transparent investment opportunities for the public.

He also highlighted SBP’s continued efforts to promote Islamic banking, green finance, cybersecurity, and financial technology to ensure that Pakistan’s financial system remains secure, resilient, and aligned with future requirements.

He stressed that economic self-reliance, strong institutions, adherence to the rule of law, and national unity remain essential to realising the true spirit of independence.

He said that while the SBP has made significant progress during the past year, challenges remain and require continued diligence, commitment, and resolve.

The governor said that SBP’s focus will remain on price stability, policy reforms, and the creation of a conducive economic environment for higher productivity, export growth, and job creation.

He emphasised that these priorities are essential for transforming economic stability into sustainable development and laying the foundation for a stronger and more prosperous Pakistan.

Published in Dawn, August 15th, 2026