State Bank of Pakistan (SBP) Governor Jameel Ahmed expressed confidence in the country’s economic trajectory. Speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday, he assured that debt levels and the balance of payments remain under control.
Ahmed stated that inflation is expected to decline further by January, paving the way for reduced interest rates. He attributed this progress to steady debt repayments and improvements in export performance.
Exports and Remittances Boost Economy
The governor highlighted the positive impact of growing exports and remittances. These factors have helped stabilize the current account and balance of payments. Ahmed urged stakeholders to focus on further boosting exports. “Export-led growth is essential for sustaining economic stability,” he said.
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Regarding debt management, Ahmed noted that the total debt remains stable at $100 billion. He revealed that Pakistan recently paid $2 billion toward Eurobond obligations and successfully converted short-term debt into long-term loans.
Interest Rate Reductions
FPCCI President Atif Ikram Sheikh pressed the SBP to reduce interest rates to single digits. He pointed out that inflation dropped to 4.1% in December 2024. “Double-digit interest rates are no longer justified,” Sheikh argued.
Other speakers emphasized the need for export-led growth as a sustainable path for economic progress. They also called for easier and cheaper access to financing for industries and small and medium-sized enterprises (SMEs).
Ahmed acknowledged the business community’s concerns and reiterated the SBP’s commitment to ensuring macroeconomic stability. He concluded by encouraging collaboration between the government, the central bank, and the private sector for sustained growth.
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