State Bank of Pakistan Governor Jameel Ahmad reported in Karachi that the current account deficit will likely stay between 0 and 1 percent of gross domestic product, driven by improving economic fundamentals after a tough adjustment period. Speaking at the annual convocation ceremony of the Institute of Cost and Management Accountants of Pakistan, Ahmad mentioned that the country advanced significantly since 2022 despite major global and regional shocks.

Inflation stayed near the central bank target range in fiscal year 2026, Ahmad noted. Even though price pressures climbed later, prudent monetary tightening should gradually bring inflation back to target. Real gross domestic product growth rebounded from a contraction in fiscal year 23 to 3.7 percent in fiscal year 26, and the central bank anticipates continued growth during the current fiscal year. International credit rating agencies, multilateral partners, and foreign investors now acknowledge these improvements and the stronger economy.

Decisive Policies Helped Restore Stability

Reviewing adjustments from fiscal year 22 and fiscal year 23, Ahmad pointed out that prompt action, fiscal discipline, and data-driven policymaking reinforced economic strength. Raising the policy rate and holding it steady for nearly a year, paired with temporary steps to control non-debt foreign exchange outflows, stopped a deeper debt and external financing crisis while restoring macroeconomic stability.

Real progress requires long-term stability rather than short-term fixes, according to Ahmad. He stated that keeping a positive forward-looking real policy rate reduced inflation from above 30 percent down into the medium-term target window. Risk-based supervision also enhanced the early detection of financial stability risks, while banking sector indicators stayed strong despite high policy rates.

Governor Urges Graduates to Prioritize Evidence and Ethics

Ahmad advised the new graduates to use their education to aid Pakistan's economic growth. "When faced with such decision, 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," he said. He credited the finance and accounting profession with building strong institutions, ensuring accountability, and backing sound governance before congratulating the class.