Overview
- SBP Governor Jameel Ahmad said on Friday that FY26 GDP growth is now projected at 3.75–4.75 percent, above the government's provisional 3.7 percent estimate.
- Worker remittances are set to exceed $41.5 billion in FY26 and the central bank forecasts they will reach about $44 billion in FY27, with Roshan Digital Account inflows rising to over $300 million monthly.
- The State Bank reported its FX reserves held at $18.4 billion by end-FY26 despite large external repayments, a shift the bank credits to stronger remittance inflows and improved external management.
- The central bank has wound down government-funded remittance subsidies and said commercial banks and exchange companies will continue offering incentives at their own cost so formal inflows are not disrupted.
- Remaining challenges include a wider FY26 trade deficit of about $39.47 billion and average inflation around 7.05 percent, but the SBP expects exports to recover in FY27 and says improved reserves and debt composition have bolstered investor confidence.