Our Debt and Balance of Payments Are Under Control: SBP Governor

The State Bank of Pakistan (SBP) Governor Jameel Ahmed assured on Thursday that Pakistan’s debt level and balance of payments are under control despite facing one of the worst economic crises back in 2023. During a press briefing, the governor said Pakistan’s foreign debt volume had improved to $100.8 billion, with a $500 million increase attributed to debt revaluation. He noted that external debt levels remained consistent with 2022 and were largely financed through long-term multilateral borrowings which helped improve debt servicing and ease pressure on balance of payments. The central bank governor warned that exceeding 4 percent growth without adequate foreign exchange reserves would strain the balance of payments and impact industries. He also stressed the need for export growth to support further development. On remittances, the SBP chief said they were stabilizing and expected to surpass $35 billion this fiscal year. Foreign investors have repatriated $1.1 billion in 2024 so far, he added. The governor expressed optimism about overall improvement in the current account and inflation outlook. SBP governor projected that business confidence and foreign direct investment would improve as the economy stabilizes.