Despite shocks, economic data improves

Pakistan’s economic indicators have strengthened since 2022 despite external and regional disruptions, State Bank of Pakistan Governor Jameel Ahmad said at an ICMA Pakistan convocation, The Express Tribune reported. He said inflation was near the central bank’s target range in FY26, though it has increased since, and is expected to ease gradually.

Ahmad said the current account shortfall is projected at 0-1% of GDP, while real growth recovered from a contraction in FY23 to 3.7% in FY26 and is expected to rise further this fiscal year. He credited policy discipline and sustained monetary tightening with helping restore stability, while noting that financial-sector indicators improved despite high policy rates. International rating agencies, multilateral partners and foreign investors were recognising the country’s improving fundamentals, he added.