SBP Governor predicts increase in inflation rate

Karachi: Governor of the State Bank of Pakistan (SBP) Jamil Ahmed has predicted an increase in the pace of inflation and said that inflation will increase from next month.

Addressing the inaugural ceremony of Pakistan Literacy Week in Karachi, the Governor SBP said that in 2022 we were in difficult circumstances and inflation was increasing rapidly. Due to these problems, foreign exchange reserves were equal to 2 weeks of imports. Our exchange rate had depreciated by 50 percent, and we also saw a wide gap in the interbank and open market, but after that, we took several steps.

He stated: “We took strict policy measures, and imposed restrictions on imports, due to which we had to increase the interest rate. In March 2025, we saw inflation at a low of 0.7 percent, however, inflation will increase from next month”.

The Governor of the State Bank added that our current account was in deficit last year, but this year it is in surplus. Despite all the circumstances, we have been able to keep the current account in surplus. The exchange rate is also stable due to these same policy measures. The difference between the interbank and open market has also reduced.

Jamil Ahmed further said that external payments are $26 billion, of which $16 billion will be rollover or refinance, and $8 billion of the remaining $10 billion has been paid.

He also stated that by the end of the fiscal year 2025, GDP growth will be 2.5 to 3.5 percent. If agricultural development remains good, economic growth can reach 4.2 percent.