State Bank of Pakistan (SBP) Governor Jameel Ahmad recently voiced concerns about the country’s current economic model, stating it is insufficient to support its population of over 250 million. Addressing an event hosted by the Pakistan Business Council (PBC), he urged business leaders and policymakers to recognize that stabilization policies cannot continue indefinitely and that the nation must adopt a new, sustainable, and growth-oriented approach.
​Need to Shift Focus from Stabilization to Growth
​Governor Ahmad highlighted the country’s consistently declining economic growth rate. He noted that the average growth rate has fallen from 3.9\% over the past 30 years to 3.4\% in the last five years. He stressed that Pakistan is currently at an “inflection point,” necessitating a crucial shift in focus from short-term stabilization measures to achieving sustainable and inclusive growth.
​Call for Structural Reforms and Private Sector Focus
​The Governor advised policymakers to address structural issues through long-term reforms. He also called on the Private Sector to prioritize long-term benefits over short-term profits. Ahmad encouraged businesses to look beyond domestic gains and focus on global competitiveness, urging them to integrate into global value chains.
​SBP’s Stance on Economy and Reserves
​Governor Ahmad also shared that the Central Bank is actively taking measures to prevent the economy from entering another “boom and bust” cycle. He pointed out that inflation has subsided and is expected to remain within the SBP’s target range of 5\% to 7\% in the medium term. Furthermore, he clarified that the recent increase in the SBP’s Foreign Exchange Reserves is a result of strategic market purchases rather than debt accumulation, ensuring that this growth has not increased the country’s external debt burden.