Islamabad (Commerce Desk): Governor of the State Bank of Pakistan, Jameel Ahmad, briefed the National Assembly’s Standing Committee on Finance, stating that the UAE is not asking for repayment of its $2 billion loan. Previously, the loan was rolled over annually, but it is now being rolled over on a monthly basis.
He noted that the country’s debt sourcing had earlier reached $4 billion, which has now decreased, while exports are currently under pressure. The briefing was attended by committee members, the Finance Minister, officials from the Ministry of Finance, State Bank authorities, and others.
The Governor projected that inflation is expected to remain between 5% and 7% this year. Pakistan’s current account deficit was $17.5 billion in 2022, but measures taken reduced it to about 1% of GDP in 2023. Last year, the country recorded a $2 billion current account surplus—the first in 14 years.
He added that Pakistan’s foreign exchange reserves, which were previously $2.8 billion (enough for just two weeks of imports), have now risen to over $16 billion. External debt had increased from $55 billion to $103 billion over seven years and has remained at that level since last year. The total current debt stands at $148 billion, with the government’s share around $103 billion.
Governor Jameel Ahmad stated that the target is to raise foreign exchange reserves to $18 billion by June 2026 and $20 billion by December 2026.
