Improved external account shows economic resilience: SBP Governor

KARACHI: Jameel Ahmed Governor State Bank of Pakistan (SBP) has said that the improvement in Pakistan’s external account reflects not only better economic indicators but also greater stability and resilience, which can help the country move towards sustainable economic growth. Speaking at the launching ceremony of Pasban Remittances Reward Scheme on Friday, the Governor SBP highlighted the substantial strengthening of the country’s external account position. He noted that the external current account deficit, which had reached unsustainable levels in FY22-causing a rapid depletion of foreign exchange (FX) reserves, has now been brought to manageable levels, supporting a sustained build-up in FX buffers. SBP’s FX reserves, which fell below USD 3. 0 billion in February 2023, now stand at USD 21. 4 billion. READ MORE: PM lauds FM, team as FX reserves hit all-time high of USD21. 4bn He emphasised that, unlike in the past, the continued strengthening of FX buffers has been driven primarily by FX purchases from the market rather than an accumulation of external debt. The Governor appreciated the contributions of overseas Pakistanis and highlighted the exceptional performance of workers’ remittances, which reached a record USD 41. 6 billion in FY26, compared with USD 21. 7 billion in FY19, nearly doubling over the period. Governor SBP emphasised that external account stability represents more than an improvement in key indicators; they reflect hard-earned stability and resilience that can help break the boom-bust cycles and place the Pakistan’s economy on a more sustainable growth path. He noted that the government and the SBP have undertaken a range of policy and reform measures to support this turnaround. To promote exports, the Government provided tax incentives in the current year’s budget, while SBP, in coordination with stakeholders, designed targeted long-term financing and performance-based rebate schemes. Jameel Ahmad said that the SBP and the government have been working closely with the PBA over the past few months to develop a self-sustaining and market-oriented remittance scheme that can continue to facilitate, encourage, and attract workers’ remittances from overseas Pakistanis through formal channels and now the scheme has been launched. He said that workers’ remittances are the backbone of millions of families across Pakistan. They help meet household expenditures, support education and healthcare, and provide resources for investment and economic opportunity. He said that the scope of the Roshan Digital Account (RDA) scheme has also been expanded to allow foreign investors and Pakistani residents, with declared foreign assets, besides overseas Pakistanis to invest through RDA channels. SBP has undertaken outreach initiatives, including a recent awareness session in the UK. In addition, IT companies and freelancers have been facilitated in opening foreign currency accounts and retaining export proceeds in those accounts. The Governor SBP also noted that the Government had introduced Home Remittance Incentive Schemes over the years to encourage the use of formal channels. These schemes helped develop the market, brought more financial institutions into the ecosystem, expanded Pakistan’s domestic and global reach, and strengthened the infrastructure needed to process growing volumes of remittances. As the market developed and the cost of these schemes increased, the Government and SBP undertook a planned and gradual transition towards a more sustainable, market-oriented model, in close coordination with the banking industry, he informed. Jameel Ahmad appreciated the banking industry’s continued support in strengthening formal remittance channels, noting that the launch of Pasban represents a further step in this transition. He said the initiative would help maintain the attractiveness of formal channels while recognising the important contribution of overseas Pakistanis to Pakistan’s economy. The Governor also appreciated the Pakistan Banks Association and the banking industry for their partnership in developing and launching the scheme. Copyright Business Recorder, 2026

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