KARACHI, (TDI): Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, announced that Pakistan has successfully repaid $2 billion in loans over the past two years, signaling positive strides in managing the country’s foreign debt.
Speaking during a television talk show, Ahmed also highlighted the country’s improved foreign exchange reserves and projected a $700 million surplus in the current account for November 2024.
“The foreign exchange reserves have increased, and we anticipate a $700 million surplus in the current account for the month of November,” Ahmed stated, underscoring the nation’s steady economic recovery amid global challenges.
The governor also expressed confidence that remittances from Pakistan’s overseas workforce would exceed $35 billion by the end of the current fiscal year.
This influx of foreign currency has been a vital lifeline for Pakistan’s economy, contributing to its resilience in the face of external shocks.
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Ahmed’s remarks followed the recent decision by the SBP’s Monetary Policy Committee (MPC) to reduce the policy interest rate by 200 basis points, bringing it to 13%.
The move, effective from December 17, 2024, aims to stimulate economic growth while addressing inflation concerns.
In its statement, the SBP highlighted that inflation had decreased to 4.9% in November 2024, in line with the committee’s expectations.
The decline was mainly driven by a drop in food inflation and the easing of gas tariff hikes implemented in late 2023.
However, the central bank acknowledged that core inflation, which remains stubbornly high at 9.7%, continues to pose a challenge.
The SBP also pointed out that inflation expectations among consumers and businesses remain volatile, complicating efforts to stabilize the economy.
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Despite the ongoing inflationary pressures, Ahmed’s positive outlook on Pakistan’s economic fundamentals, including foreign reserves, loan repayments, and remittances, marks a significant step toward economic stability and growth.
His statements come as the country continues to navigate the complexities of fiscal reforms and external financial commitments.
With foreign exchange reserves bolstered by remittances and loan repayments, and efforts to curb inflation through policy rate cuts, Pakistan aims to maintain a favorable economic trajectory in the coming months.
