Farmane-Ilahi

KARACHI (92 News) State Bank of Pakistan (SBP) Governor Jameel Ahmed has predicted an increase in the pace of inflation, stating that inflation will increase from next month.

Addressing the inaugural ceremony of Pakistan Literacy Week in Karachi, the SBP governor said, “In 2022, we were in difficult circumstances, and inflation was increasing rapidly. Due to these problems, foreign exchange reserves were equal to two weeks of imports.”

He added, “Our exchange rate had depreciated by 50 percent. We also saw a wide gap in the interbank and open market, but after that we took several steps.”

The SBP governor also said, “We took strict policy measures and imposed restrictions on imports, due to which we had to increase the interest rate. In March 2025, we saw inflation at a low of 0.7 percent. However, inflation will increase from next month.”

He further stated, “Our current account was in deficit last year, but this year it is in surplus. Despite all the circumstances, we have been able to keep the current account in surplus. The exchange rate is also stable due to these same policy measures. The difference between the interbank and open market has also reduced.”

Jameel Ahmed said that external payments are $26 billion, of which $16 billion will be rolled over or refinanced, and $8 billion of the remaining $10 billion has been paid.

“By the end of the fiscal year 2025, GDP growth will be 2.5 to 3.5 percent. If agricultural development remains good, economic growth can reach 4.2 percent,” he maintained.