KARACHI: Pakistan’s central bank chief expects the economy to grow as much as 4.75 percent this fiscal year, pushing back against a recent downgrade by the International Monetary Fund.
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 percent 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.
“All these sources and indicators, along with FY26-Q1 data, point to a broad-based recovery in all three sectors of the economy,” he said. He added that the central bank believed that agricultural activity had remained resilient despite floods and “it is even performing better than its targets.”
