Governor SBP Highlights Progress Towards Economic Stability And The Need For Continued Reforms On Independence Day.

The State Bank of Pakistan (SBP) commemorated the 79th Independence Day of Pakistan with a flaghoisting ceremony at SBP Karachi. Governor SBP, Mr. Jameel Ahmad, hoisted the national flag to mark the occasion.

Addressing the gathering, Governor Ahmad said that Pakistan’s economy has made important progress towards stability during the past year, supported by prudent fiscal and monetary policies, and greater economic discipline. He said that the country is continuing to move from economic stabilisation towards sustainable growth.

Highlighting developments in price stability, the Governor noted that average inflation during FY26 was 7.1 percent. He said that SBP’s assessment is that the current monetary policy stance remains appropriate to maintain inflation within the 5–7 percent medium-term target, while providing adequate room for economic activity, investment, and job creation.

The Governor said that prudent fiscal and monetary policies have also supported economic growth, which stood at 3.7 percent in FY26. Economic growth is expected to remain between 3.5 and 4.5 percent in FY27. He added that this is an encouraging indication that the economy is continuing to move towards sustainable growth following a period of stabilisation.

Referring to developments in the external sector, Governor Ahmad said that overseas Pakistanis have expressed their confidence in the country’s economic progress through record remittances, which exceeded USD 41 billion in FY26 and are expected to reach USD 44 billion in FY27. The increase in remittances and a low current account deficit are contributing to the improvement in the country’s foreign exchange reserves, which reached USD 18.4 billion by end-FY26. Reserves are expected to exceed USD 21 billion during FY27, he added.

Governor Ahmad also highlighted the steps taken by SBP during the past year to strengthen and modernise Pakistan’s financial system. He said that the successful launch of PRISM+ has brought the country’s payment infrastructure closer to international standards by making large-value payments and settlements faster, safer, and more efficient.

He further noted that SBP’s measures to promote digital payments have contributed to a significant increase in the use of digital channels, with the number of retail digital transactions rising from around 10 billion to 12 billion during the past year. He said that the growth of digital payments is not only a reflection of greater technology adoption but also an important step towards a more documented, transparent, and efficient economy.

Emphasising the importance of financial inclusion, the Governor said that SBP remains committed to ensuring that all segments of society have access to the formal financial system. In this regard, SBP has launched InvestPak to facilitate convenient, secure, and transparent investment opportunities for the public. He also highlighted SBP’s continued efforts to promote Islamic banking, green finance, cybersecurity, and financial technology to ensure that Pakistan’s financial system remains secure, resilient, and aligned with future requirements.

Governor Ahmad stressed that economic self-reliance, strong institutions, adherence to the rule of law, and national unity remain essential to realising the true spirit of independence. He said that while SBP has made significant progress during the past year, challenges remain and require continued diligence, commitment, and resolve.

Looking ahead, the Governor said that SBP’s focus will remain on price stability, policy reforms, and creating a conducive economic environment for higher productivity, export growth, and job creation. He emphasised that these priorities are essential for transforming economic stability into sustainable development and laying the foundation for a stronger and more prosperous Pakistan.

The Governor appreciated the hard work, commitment, and professional dedication of SBP officers and employees, saying that the progress achieved during the past year is the result of their collective efforts.

The ceremony concluded with a reaffirmation of SBP’s commitment to playing its role in promoting sustainable economic development, financial stability, and the welfare of the people of Pakistan.