ISLAMABAD: Pakistan’s economy is showing signs of positive macroeconomic indicators, but to maintain and enhance this momentum, it is essential to make sustained efforts and implement innovative policies.
Talking to Media, State Bank of Pakistan Governor Jameel Ahmad said that the SBP’s restrictive import strategy was deliberate as this approach had significantly decreased the current account deficit, lowering it from $17.48 billion in FY22 to $3.2 billion in FY23, and further to $0.68 billion in FY24.
He said Pakistan had witnessed a substantial rise in foreign exchange reserves, now a total of $9.3 billion, even in the face of continuing debt repayments.
He highlighted that inflation had been significantly brought down to 11.1% in July 2024 from a staggering 28.3% in July 2023. “The reduction in inflation indicates the SBP’s and the government’s concerted efforts to stabilise the economy.”
He said that the current account deficit, a key macroeconomic indicator, had seen a dramatic reduction. “From a high of $17.48 billion in FY22, it has decreased to $3.2 billion in FY23, and further to $0.68 billion in FY24. This improvement highlights the effectiveness of the economic policies and measures implemented over the past few years.”
Governor Ahmad also emphasised the role of overseas Pakistanis, whose remittances had increased from $27.33 billion in FY23 to $30.25 billion in FY24. “This increase in remittances, alongside a notable rise in IT exports, has contributed positively to the country’s economic health.”
Looking ahead, he said the SBP was keen on leveraging the potential of the agriculture and SME sectors. “Banks have developed plans to issue more loans to these sectors than the previous year.”
Ahmad stressed the importance of innovative strategies to address longstanding economic issues, particularly in the light of digital innovations and emerging cybersecurity threats.
The SBP’s initiatives, such as the National Financial Inclusion Strategy, the National Financial Literacy Programme, and the Banking on Equality project, aim to ensure greater access to financial services for the general public.
Ahmad highlighted the central bank’s proactive stance on cybersecurity. He urged the banking industry to upgrade their systems and inform customers about potential cybersecurity threats, thereby enhancing the overall security and stability of the financial sector.
Talking to Media, Aurangzeb Kakar, an assistant director in the monetary policy wing at SBP, said that notable achievements such as the rise in foreign exchange reserves, lower inflation, and a considerable reduction in the current account deficit highlighted the success of the SBP’s monetary policies and the government’s fiscal strategies.
He said that though the economic indicators suggested a promising path forward, it would take continued commitment and inventive strategies to preserve and amplify this progress, ultimately securing lasting economic stability and expansion. –INP
