KARACHI: The Pakistan economy has moved to a firmer footing with growth projected between 3.25 per cent and 4.25 per cent in FY26, Governor of the State Bank of Pakistan (SBP) Jameel Ahmad said on Tuesday, citing stronger reserves and easing inflation.
Speaking at the Pakistan Textile Council’s (PTC) annual meeting in Karachi, Ahmad highlighted a turnaround from the severe economic pressures of 2022-2023. Foreign exchange reserves have surged to $14.3 billion from a low of $2.8 billion in early 2023, while remittances rose to more than $38 billion in FY25, helped by a shift from informal to formal channels.
Inflation dropped to a historic low of 3.2 per cent by June 2025, enabling the central bank to cut its policy rate from 22 per cent to 11 per cent over the past year. “Our priority remains stability, reserve accumulation, and keeping inflation within the 5-7 per cent range,” Ahmad said.
PTC Chairperson Fawad Anwar praised macroeconomic gains but warned that exporters face structural bottlenecks and rising input costs. He called for the removal of import duties on key raw materials, a uniform 1.0 per cent duty drawback, and subsidised financing to counter high wage and energy expenses.
“Textiles and apparel are Pakistan’s backbone. Without bold policy measures, we risk losing a once-in-a-decade chance to capture market share,” Anwar said.Both sides agreed to continue policy dialogue on concessional export credit and renewable energy financing to support export competitiveness.