By Staff Reporter
KARACHI: Governor State Bank of Pakistan (SBP) Jameel Ahmad said the country’s current economic policies are poised to deliver lasting growth, a sharp departure from the boom-bust cycles of the past, while spotlighting women entrepreneurs as a cornerstone of inclusive development.
Speaking at the launch of the Women Entrepreneurs Finance Code in Karachi on Monday, Ahmad pointed to a string of macroeconomic wins, low inflation, stable currency markets, and robust reserves—as evidence of a turning tide, underpinned by a commitment to structural reforms.
Ahmad’s comments come as Pakistan claws its way out of years of economic turbulence. “Unlike in the previous episodes of boom-bust cycles, the current policy mix remains conducive to a lasting increase in economic activity rather than a short-sighted, fragile, and populist ‘sugar rush’,” he told an audience of national and international dignitaries at the event, co-hosted by SBP and the Asian Development Bank (ADB).
The gathering rallied around women’s economic empowerment, a cause Ahmad tied directly to the nation’s broader growth ambitions. He framed the policy approach as a deliberate pivot.
“Both SBP and the government remain steadfast in their approach to transitioning from recently hard-earned economic stability to a medium-term economic transformation,” Ahmad said in his keynote address.
That shift, he argued, hinges on a disciplined monetary stance, an exchange rate tethered to fundamentals, and steady fiscal consolidation, moves that are shoring up debt dynamics and building buffers against external shocks.
The data backs Ahmad’s case. Average headline inflation has slid to 4.5% in fiscal year 2025, the lowest in nine years. With monetary and fiscal policies working in tandem, he expects inflation to settle within the target range of 5-7%. The foreign exchange market, meanwhile, is holding steady, fueled by strong external account performance. SBP’s FX reserves have swelled to nearly five times their early 2023 lows, a high-quality buildup Ahmad credited to resilient exports and robust remittances, despite a pickup in import volumes tied to the ongoing recovery.
Fiscal discipline is also paying off. The government notched a second consecutive primary surplus in FY25, with tax and non-tax revenues climbing sharply while spending stayed in check.
Ahmad noted that Islamabad is eyeing an even bigger surplus in FY26, a sign of sustained coordination with SBP’s tightening measures. “Economic growth is showing signs of gradual, consistent, and sustainable recovery,” he said, contrasting the current trajectory with the stop-start patterns of years past.
Beyond the numbers, Ahmad zeroed in on inclusivity as the linchpin of meaningful progress. “Economic growth holds little meaning unless it is both sustainable and inclusive,” he said, casting women entrepreneurs as “a powerful engine for economic growth and social progress.”
The Women Entrepreneurs Finance Code, launched at the event, aims to turbocharge financial access for women-led micro, small, and medium enterprises (WMSMEs)—a mission Ahmad said dovetails with SBP’s goal of fostering a stable, broad-based financial ecosystem.
Ahmad praised the ADB’s role in helping SBP adopt and roll out the code, as well as its broader push for women’s financial inclusion in Pakistan. The event itself underscored that commitment, drawing a chorus of support from attendees for empowering women economically.
The governor acknowledged the focus now shifting to structural reforms, an area he believes sets this recovery apart. “This time is indeed different for Pakistan’s economy due to the several positive developments on the economic front,” he said, citing the interplay of macro stability, fiscal prudence, and external resilience.
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