SBP chief expects broader recovery

The chief of the central bank expects the economy to grow as much as 4.75% this fiscal year, pushing back against a recent downgrade by the International Monetary Fund (IMF). Governor Jameel Ahmad, in written responses to Reuters, argued the recovery is broader and more durable than headline export data suggest. The State Bank of Pakistan (SBP) raised its FY26 growth forecast to 3.75-4.75% at its January meeting, 0.5 percentage point higher than its previous range, despite a contraction in exports in the first half of the year and a widening trade deficit. The governor said differences in projections were not unusual and reflected timing issues, including the IMF’s incorporation of flood-related assessments in its latest outlook.