SBP governor credits disciplined policy for economic recovery

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said on Wednesday that secure sea routes are vital to economic stability at a time of rising regional tension, addressing a symposium in Islamabad, the Associated Press of Pakistan reported.

The symposium, titled "Pakistan's Maritime Future: Maritime Security, Ocean Governance and Blue Economy", was organised by the National Institute of Maritime Affairs at Bahria University.

In a separate address, State Bank of Pakistan Governor Jameel Ahmad told the annual convocation of the Institute of Cost and Management Accountants of Pakistan that decisive, evidence-based policymaking had underpinned the country's recovery, according to a report in Daily Times.

Ahmad said Pakistan had "come a long way since 2022" and that the impact of significant supply shocks on the domestic economy had been contained. Inflation remained close to the central bank's target range in FY26, he said; it has risen since then but is projected to ease gradually towards the target, supported by prudent monetary tightening.

He said the external account remains stable, with the current account deficit expected to stay within 0 to 1 percent of GDP. Real GDP growth is recovering gradually, from a contraction in FY23 to 3.7 percent in FY26, and is expected to rise further in the current fiscal year.

According to the governor, these improvements are being recognised by international credit rating agencies, multilateral partners and foreign investors. He recalled the adjustments of FY22 and FY23, saying that raising the policy rate and holding it for almost a year, alongside temporary measures to manage non-debt foreign exchange outflows, had been necessary to restore stability and avert a deeper external financing and debt crisis.

He said lasting economic progress could not be achieved through short-term fixes at the expense of long-term stability, and that maintaining a positive forward-looking real policy rate had helped bring inflation down from over 30 percent to within the medium-term target range. Risk-based supervision, he added, had strengthened the proactive identification of financial stability risks, with financial sector indicators improving despite the period of elevated policy rates.

Addressing the graduates, he said: "Let evidence guide your judgment, let professional ethics define your conduct, and let a long-term commitment to Pakistan's sustainable and inclusive development inform your action."

Concluding, Ahmad underscored the accounting and finance profession's role in strengthening institutions, promoting accountability and ensuring informed decision-making, and its contribution to sound governance and the responsible use of public resources.