Governor State Bank of Pakistan (SBP) Jameel Ahmed has revealed that Pakistan has repaid $2 billion in loans over the past two years, signaling positive economic progress.
In a recent television interview, the SBP governor noted an increase in foreign exchange reserves and projected a $700 million current account surplus for November. He also shared that remittances from overseas Pakistanis are expected to surpass $35 billion in the current financial year.
Ahmed disclosed that the central bank has been purchasing dollars from the interbank market to support economic stability.
The governor's remarks followed the SBP’s decision to reduce the policy rate by 200 basis points, bringing it down to 13 percent, effective December 17, 2024. The Monetary Policy Committee (MPC) explained the rate cut in light of declining inflation, which fell to 4.9 percent year-on-year in November 2024, driven by reduced food inflation and the fading impact of last year’s gas tariff hike.
However, the MPC expressed concerns over persistent core inflation, which remains at 9.7 percent, and noted volatility in consumer and business inflation expectations.