Pakistan’s External Debt Stable for Four Years, Repayment Capacity Improved: SBP Governor
Karachi: Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has said that Pakistan’s external debt has remained broadly unchanged over the past four years, while the country’s debt repayment capacity has improved significantly due to stronger foreign exchange reserves.
Speaking at a press conference in Karachi, Ahmad said Pakistan’s economy has shown signs of improvement and expressed optimism that the country’s international credit rating is likely to improve.
He projected that Pakistan’s economy could achieve a gross domestic product (GDP) growth rate of around 4% during fiscal year 2026–27. According to preliminary estimates for FY2025–26, workers’ remittances are expected to reach $41.5 billion.
The SBP governor also forecast an increase in export earnings during FY2026–27, reversing the decline recorded in the previous fiscal year and strengthening the country’s external sector.
Jameel Ahmad stated that despite global economic challenges, Pakistan’s external debt has remained at nearly the same level over the last four years. He added that the country now holds foreign exchange reserves several times higher than the minimum level required to cover 15 days of imports, reflecting an improved external financial position.
