The State Bank of Pakistan (SBP) governor, in a media talk on Wednesday, announced a series of encouraging economic indicators, highlighting a notable reduction in the country’s external debt and strong performance in remittances and financing sectors.
According to the governor, Pakistan’s external debt has not increased since 2022, marking a significant shift from previous years. The debt-to-GDP ratio has improved, falling from 31 percent to 26 percent, indicating stronger fiscal stability. He noted that between 2015 and 2022, Pakistan’s external debt had been rising at an average of $6.4 billion annually, making the recent stabilisation a major achievement.
The governor stated that the current account deficit is expected to stay between 0 and 1 percent of GDP during the current fiscal year. Despite a rise in imports, he reassured the public that the current account remains “fully under control.”
A major highlight of the briefing was the strong inflow of remittances. Pakistan is projected to receive more than $40 billion in remittances this year—an increase from the $38 billion received last fiscal year.
The governor also shared progress on the State Bank’s financing initiatives. Against the target of providing Rs 50 billion in financing to women from November 2024 to October 2025, the Bank has already released a remarkable Rs 230 billion. Meanwhile, SME financing increased substantially, rising from Rs 550 billion to Rs 700 billion over the last year.
He expressed confidence that these positive trends reflect improving economic fundamentals and stronger financial inclusion across the country.