Overview
- The $7 billion IMF Extended Fund Facility runs through September–October 2027, with its being the last programme contingent on sustained policy discipline.
- The SBP projects the current account deficit at 0–1% of GDP, and the governor expects it to be around 0.5%.
- Inflation is targeted at 5–7% as foreign exchange reserves are projected to grow and external debt repayments are made on schedule.
- Workers’ remittances are forecast to rise to about $42 billion in FY26 from $38.3 billion in FY25, providing a key buffer for the external account.
- Recalling $8 billion in FX sales in FY2021–22 that preceded a 4.7% of GDP deficit and 38% inflation in May 2023, the SBP vowed to avoid reserve-depleting actions and to pursue any return to roughly 6% growth gradually.