Budgetary measures may up inflation, external sector to remain manageable in FY25: SBP chief
Jameel ahmad says over $16bn will be rolled over by friendly countries


Islamabad: Budgetary measures are expected to increase inflation in the country but the external sector will remain manageable in the current fiscal year (FY250, State Bank of Pakistan (SBP) Governor Jameel Ahmad warned on Wednesday.
Ahmad updated the National Assembly Standing Committee on Finance and Revenue chaired by MNA Naveed Qamar, about the country’s foreign and domestic sector performance for the ongoing fiscal year.
The SBP chief noted that the total outstanding debt payment for FY25 stands at $26.2 billion. Of this, more than $16bn will be rolled over by friendly countries, leaving a balance of $10bn to be paid by June 30 next year.
He said the central bank had already paid $1.5bn in debt last month, with $8.5bn remaining for payment by the end of the fiscal year. In FY24, the State Bank paid out $12.5bn, while the country’s external debt reached $130bn.
Ahmad underlined the need for structural reforms in various sectors of the economy to tackle the existing vulnerabilities, achieve and sustain low levels of inflation and grow at a high and sustainable pace.
He said the country’s foreign exchange reserves had reached $9.1bn after last month’s debt payment and could increase to $13bn by the end of this fiscal year.

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