Economy Is Stronger Even With $70 Billion Import Bill: SBP Governor

Pakistan’s economy is in a much stronger position despite imports climbing back to nearly $70 billion, a level last seen in 2022, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Friday.

Unlike four years ago, when the country faced a severe external financing crisis, the central bank has been able to strengthen foreign exchange reserves while maintaining external stability.

Speaking at a press conference in Karachi, Ahmad said Pakistan is expected to import around $70 billion worth of goods during the current fiscal year. He noted that when imports were at a similar level in 2022, the country recorded a $17.5 billion current account deficit, forcing the SBP to inject $8 billion into the foreign exchange market to support the rupee.

In contrast, the governor said the central bank has purchased $8 billion from the foreign exchange market this year, reflecting a significant improvement in Pakistan’s external position and helping boost foreign exchange reserves.

Ahmad also said workers’ remittances are expected to exceed $41 billion during the current fiscal year despite uncertainty caused by tensions in the Middle East. He said the SBP had initially estimated that the conflict could reduce remittances by around $1 billion, but inflows have remained resilient and continue to support the country’s external account.

The governor said sending money to Pakistan remains free for overseas Pakistanis. While the government has discontinued subsidies for remittance incentive schemes, commercial banks will now absorb the associated costs and continue offering free transfer services. He added that banks would benefit from stronger remittance inflows through increased trade finance activity.

According to Ahmad, the number of Pakistanis leaving for overseas employment has remained stable at 600,000 to 700,000 workers annually, yet remittances have risen from around $23 billion to more than $40 billion, driven by greater use of formal banking channels and higher transfers per worker.

The SBP chief also confirmed that the Sohni Dharti Remittance Program and other government-funded remittance incentive schemes have been discontinued. A new remittance programme is being developed, but overseas Pakistanis will continue to enjoy free remittance services as banks take over the costs.

The governor said exports are expected to improve during FY27 as global commodity prices recover. While food exports, particularly rice, declined last year, non-food exports recorded growth, and the SBP expects export momentum to strengthen further.

He also expressed confidence that Pakistan’s sovereign credit rating will improve as macroeconomic conditions continue to stabilize.