Pakistan’s economy on recovery path amid global tides: Governor SBP

Karachi: Governor State Bank of Pakistan (SBP) Jameel Ahmad said that the firm commitment of the government and the SBP to respond to the macroeconomic challenges has resulted in significant improvement and Pakistan’s economy is on the path to recovery amid global challenges.

The SBP governor, while delivering a keynote address to the Members Convocation of ICMA Pakistan late Saturday night, elaborated on the recent improvement in Pakistan’s economy and shared that it is worth taking a step back and analysing where our economy is standing and where it is headed.

Referring to the challenging macroeconomic environment Pakistan was facing a year ago, he said that inflation had reached 38 per cent, the FX reserves were fast depleting, the exchange rate was under a lot of pressure and uncertainty was quite high.

However, today, inflation is coming down sharply, our reserves have risen to around US$8 billion despite heavy debt repayments and will so cross the $ 9 billion mark, the current account deficit has narrowed quite significantly, and as a result, the PKR is stable while the stock market is reaching new highs, Jameel Ahmed stated adding that uncertainty has also reduced and Pakistan’s bilateral and multilateral partners are continuing their support.

The governor, while citing Pakistan’s economic improvements, shared that progress was made possible because of a firm commitment of the government and the State Bank of Pakistan to effectively respond to the macroeconomic challenges.

“Unpopular yet necessary measures had to be taken as the State Bank raised the policy rate to 22 per cent, in order to reduce pressure on inflation and the current account,” the SBP governor said and added that the government also undertook fiscal consolidation by constraining non-essential current expenditures and the coordinated policy response was now yielding the desired results.

Governor SBP stressed the need for fresh perspectives and innovative solutions to address the longstanding issues facing our economy and said that fresh perspectives and innovative thinking have become more necessary, as the global shocks facing our economy are getting increasingly complex. He shared that climate change, technological advancements, cyber security threats, and financial innovations are adding new dimensions to the risks to economic and financial stability.

Governor Jameel Ahmad congratulated the graduating accounting professionals and encouraged them to make a mark for themselves and proactively respond to the emerging challenges as our country needs professionals with in-depth knowledge of economics, finance and accounting to find workable solutions.

He said that leadership skills are also paramount to designing and implementing the policy and regulatory decisions with courage and fortitude. In conclusion, the Governor encouraged the graduates to work with dedication, hard work, and unwavering commitment to excellence to help in shaping the economic landscape of Pakistan.

Earlier, President ICMA Pakistan Shehzad Ahmed Malik extended a warm welcome to Governor SBP Jameel Ahmed, Deputy Governor Dr. Inayat Hussain and Deputy Governor Saleem Ullah for attending the Convocation. He congratulated the SBP team on their efforts for stabilizing the economy.

In the end, Governor SBP bestowed degrees upon the graduating CMAs.