Pakistan inflation expected to rise to 7%, SBP Governor says

KARACHI: Governor State Bank of Pakistan Jameel Ahmad said inflation in Pakistan is expected to rise to around 7%, while economic growth reached 3.7% during the first nine months of the current fiscal year.

Addressing the Karachi Chamber of Commerce and Industry, the State Bank governor said inflation is likely to ease in the second half of the next fiscal year.

He said financing for small and medium-sized enterprises (SMEs) is targeted to reach Rs1.5 trillion by June 2028.

Ahmad said the overall volume of lending has increased, with domestic borrowing rising while external debt has been reduced.

He attributed weaker exports to global economic conditions and noted that the country’s export target for the current fiscal year is expected to fall short by Rs2 billion.

The governor also said work on new currency notes is underway and the approval process with the government is continuing.