Fundamentals improve despite shocks: SBP chief

State Bank of Pakistan Governor Jameel Ahmad said the country’s economic position has strengthened despite major external and regional disruptions. Speaking at the Institute of Cost and Management Accountants of Pakistan’s annual convocation on Wednesday, he said inflation was near its target range in FY26, though it has increased since then.

Dawn reported that Ahmad expects inflation to move gradually towards the FY27 mid-year target of 5-7pc, while the current account deficit is forecast to stay between 0 and 1pc of GDP. He said real GDP growth recovered from contraction in FY23 to 3.7pc in FY26 and could rise further in FY27. Ahmad described the policy rate increase, after nearly a year without a change, and temporary steps to manage non-debt foreign exchange outflows as necessary to support macroeconomic stability.