KARACHI: Governor of the State Bank of Pakistan (SBP), Jameel Ahmad stated that Pakistan’s economy is on a more stable footing, with growth expected to be between 3.25% and 4.25% in FY2026.
Speaking at the annual meeting of the Pakistan Textile Council (PTC) in Karachi, the SBP governor provided an overview of Pakistan’s macroeconomic progress, while the council’s leadership emphasized the need for immediate policy interventions to boost export competitiveness.
Governor Ahmad noted that Pakistan has managed to overcome unprecedented economic challenges since 2022. Foreign exchange reserves, which had fallen to $2.8 billion in early 2023, have now risen to $14.3 billion. The current account deficit has narrowed, and remittances grew to over $38 billion in FY2025, largely shifting from informal to formal channels.
He emphasized that inflation had dropped to 3.2% by June 2025, a historic low, enabling the SBP to reduce the policy rate from 22% to 11% over the past year. Fiscal consolidation, reforms in exchange companies, and stable external debt levels have helped build confidence in markets.
“Pakistan’s economy is now positioned on a more stable footing, with growth projected between 3.25% and 4.25% in FY2026. Our commitment is to maintain stability, build reserves, and ensure inflation remains within the 5-7% target range,” said the governor.
While acknowledging the governor’s achievements, PTC Chairman Fawad Anwar pointed out that Pakistan must address structural barriers affecting exporters.
“Despite macroeconomic stabilisation, the cost of doing business in Pakistan remains uncompetitive. The exclusion of essential raw materials from the Export Facilitation Scheme (EFS) has burdened exporters at a time when global markets offer a once-in-a-decade opportunity for Pakistan to capture market share,” he said.
Anwar reiterated the council’s demand for the withdrawal of import duties on essential raw materials excluded from the EFS, with sales tax capped at 3–5% and fully refundable. He also called for a uniform 1% duty drawback scheme to support all exporters, along with subsidised financing facilities to offset rising wage and energy costs.
He stressed the need to strengthen Pakistan’s value-added exports, particularly in textiles and apparel, which he called the backbone of the country’s economy. “This is the time for bold policy support so our industry can capture long-term global market share rather than lose ground to competitors,” Anwar emphasized.
