Pakistan’s central bank governor credits currency purchases for reserve recovery
Pakistan’s central bank governor told international investors that foreign-currency purchases drove the recovery in reserves, which stood at 21.5 billion dollars on 9 October. Jameel Ahmad also described lower forward liabilities and a nearly balanced current account. His growth and current-account ranges for the next fiscal year remain forecasts.
Economics & Markets··Night
The reserve figure refers to 9 October
Jameel Ahmad, governor of the State Bank of Pakistan, the country’s central bank, presented his account of the reserve recovery to investors, rating agencies and financial institutions at the International Monetary Fund and World Bank annual meetings in Bangkok. The bank issued its account on 17 October. Ahmad said foreign-exchange reserves had risen from below 3 billion dollars in February 2023 to 21.5 billion dollars as of 9 October.[1], [2]
Ahmad attributed that accumulation mainly to the central bank’s own foreign-currency purchases. He said the external debt stock had grown only marginally over the preceding three years. His account distinguishes the source of reserve accumulation from the stock of debt: the claim of limited debt growth accompanies the claim that currency purchases supplied most of the reserve increase.[1], [2]
Forward liabilities fell in the governor’s account
The governor also put forward foreign-currency liabilities at below 1 billion dollars, down from 5.7 billion dollars. He said a nearly balanced current account in fiscal 2025–26 had helped the bank accumulate reserves. Reforms affecting exchange companies had supported remittances through formal channels and supplied liquidity to the interbank market, according to his presentation of the changes in foreign-exchange conditions.[1], [2]
For fiscal 2025–26, Ahmad reported real economic growth of 3.7 per cent, a third consecutive primary fiscal surplus and a decline in the ratio of public debt to gross domestic product. He also pointed to rating improvements and renewed international capital-market access as results of the reform programme. These were components of the economic account he presented during the meetings.[1], [2]
Next-year ranges remain central-bank forecasts
For fiscal 2026–27, the central bank projects growth of 3.5–4.5 per cent and a current-account deficit of 0–1 per cent of gross domestic product. Those are forecasts for the next fiscal year, distinct from the preceding year’s reported outcomes. Ahmad referred to staff-level agreements on reviews of the International Monetary Fund programmes. His meetings included representatives of JPMorgan, Citi, Jefferies, Deutsche Bank, Barclays, Bank of America, MSCI, Standard Chartered and MUFG.[1], [2]
