SBP Governor holds crucial meetings with key investors in Washington

F.P. Report

Karachi: Governor of the State Bank of Pakistan, Jameel Ahmad, held a crucial meeting with key international investors in Washington, D.C. The gathering coincided with the annual meetings of the International Monetary Fund (IMF) and the World Bank, drawing representatives from major financial institutions including JP Morgan, Citibank, and Jefferies.

During the meeting, Governor Ahmad briefed the investors on the significant improvement in Pakistan’s economic situation, attributing it to the implementation of prudent monetary policies. He highlighted the country’s strong performance under the IMF program and expressed optimism about signing a letter of intent for a long-term IMF program in the future.

Governor Ahmad emphasized that the IMF program will facilitate essential structural reforms to address Pakistan’s long-term economic challenges. He pointed out that inflation has notably decreased, reaching its lowest level in March 2024 at 20.7 percent, down from a peak of 20 percent in the previous year. This reduction, he explained, is primarily due to tight monetary policy, fiscal consolidation, ease in income transfers, and improved agricultural production.

Moreover, Governor Ahmad highlighted that core inflation dropped to 15.7 percent in March, marking a significant improvement from the previous year’s levels. He also noted a decrease in the current account deficit during the fiscal year 2024, which decreased to less than $3.8 billion, remaining at $1 billion.

Efforts to redirect fund inflows towards formal channels have led to a continuous increase in foreign exchange reserves of the State Bank, which reached up to $8 billion despite a significant payment of $1 billion in Eurobond interest in April. Additionally, Pakistani expatriates have contributed to increased income through digital accounts across borders, demonstrating the positive impact of digital technologies on financial services in the country.

Governor Ahmad expressed hope that the reforms to be implemented within the stipulated period will pave the way for sustainable economic growth in Pakistan.