KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad on Friday expressed optimism about the country’s economic outlook, saying Pakistan’s economy is expected to grow between 3.75% and 4.75% in FY27, exceeding the government’s provisional growth estimate of 3.7%.
Speaking at a press conference, Ahmad said the central bank had initially expected economic growth to surpass 4%, but the ongoing conflict in the Middle East had slightly weakened the outlook.
The SBP governor said the country’s foreign exchange reserves rose significantly to $18.4 billion by the end of FY26, compared with $13 billion a year earlier, despite debt repayments of $8 billion during June alone.
He added that workers’ remittances are expected to exceed $41.5 billion in FY26, outperforming the previous fiscal year despite regional geopolitical tensions. During July-May FY26, remittances increased by 9.2% to $38.1 billion, up from $34.9 billion in the corresponding period last year.
Looking ahead, Ahmad projected remittance inflows to reach $44 billion in FY27, while export earnings are also expected to recover after declining in the previous fiscal year.
The SBP chief estimated average inflation for FY26 at 7.05%, slightly above the government’s target range of 5% to 7%.
His remarks came a day after the Pakistan Bureau of Statistics reported that the country’s trade deficit widened by 21.57% to $39.47 billion in FY26 compared with the previous fiscal year.
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