Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has expressed confidence in the country’s economic outlook, projecting GDP growth between 3.25% and 4.25% for FY2026. Speaking at the annual meeting of the Pakistan Textile Council (PTC) in Karachi, he highlighted key improvements in Pakistan’s macroeconomic indicators.
Over the past two years, Pakistan has navigated serious financial challenges. Foreign exchange reserves, which had dropped to just $2.8 billion in early 2023, have now climbed to $14.3 billion. The current account deficit has narrowed, while remittances crossed $38 billion in FY2025, with more inflows moving through formal banking channels.
Inflation has also eased significantly, falling to 3.2% by June 2025, a historic low that enabled the SBP to slash its policy rate from 22% to 11%. Fiscal discipline, reforms in exchange companies, and steady debt levels have collectively strengthened market confidence.
“Pakistan’s economy is on a stable footing. Our focus is on maintaining this momentum, building reserves, and keeping inflation within the 5–7% target range,” said Governor Jameel Ahmad.
Exporters Seek Policy Support
While appreciating the SBP’s achievements, PTC Chairman Fawad Anwar emphasized that exporters face persistent challenges. He warned that the high cost of doing business continues to undermine Pakistan’s global competitiveness.
He urged the government to:
- Withdraw import duties on essential raw materials excluded from the Export Facilitation Scheme (EFS).
- Cap sales tax at 3–5% with full refunds.
- Introduce a uniform 1% duty drawback for all exporters.
- Expand subsidized financing to ease the impact of rising energy and wage costs.
Anwar stressed the importance of value-added textile exports, calling them the backbone of Pakistan’s economy and urging bold policy measures to help the industry seize global opportunities.
The Way Forward
The session concluded with consensus that textile exports must remain central to Pakistan’s economic recovery. SBP and PTC agreed to continue policy dialogue, particularly on renewable energy financing and concessional export credit, to ensure exporters can remain competitive in global markets.