State Bank of Pakistan (SBP) Governor Jameel Ahmed has assured that Pakistan’s debt levels and balance of payments are under control, despite the severe economic challenges faced in 2023. Speaking at a press briefing on Thursday, the governor highlighted improvements in the country’s foreign debt and expressed optimism about the economic outlook.
Governor Ahmed revealed that Pakistan’s foreign debt volume had reached $100.8 billion, with a $500 million increase attributed to debt revaluation. He noted that external debt levels remained consistent with 2022 and were primarily financed through long-term multilateral borrowings. This, he explained, has helped ease debt servicing pressures and stabilize the balance of payments.
The central bank chief cautioned, however, that exceeding 4 percent economic growth without sufficient foreign exchange reserves could strain the balance of payments and negatively impact industries. He emphasized the importance of export growth to sustain economic development and reduce reliance on external financing.
On remittances, the governor stated that they were stabilizing and projected to exceed $35 billion in the current fiscal year. He also noted that foreign investors had repatriated $1.1 billion in 2024 so far, reflecting a gradual improvement in investor confidence.
Governor Ahmed expressed optimism about the overall economic outlook, citing improvements in the current account and inflation trends. He also projected that business confidence and foreign direct investment would increase as the economy continues to stabilize.
