The State Bank of Pakistan (SBP) has projected a profit of Rs2.4 trillion for the fiscal year 2024-25, which is in line with the government’s financial targets. Although this is slightly lower than last year’s record profit of Rs3.42 trillion, it is still a strong performance.
According to the SBP, the profit will be transferred to the government in the next fiscal year (FY26), once the annual audit is completed and approved.
The central bank has decided to keep the policy interest rate steady at 11%. This decision was made due to concerns about inflation, especially given the current regional tensions, which could affect prices and economic stability.
The SBP also sees signs of growth in both the industrial and services sectors. This improvement is being supported by higher imports, a rebound in the auto sector, and a rise in the Purchasing Managers’ Index (PMI), which shows positive business activity.
In terms of remittances, the SBP expects them to increase to $38 billion this year. This rise is due to more people using formal banking channels to send money home, which helps boost the country’s foreign exchange reserves.
The SBP also shared that most of the country’s external debt repayments for FY25 have already been settled. With this in mind, Pakistan is aiming to raise its foreign reserves to $14 billion, which will help strengthen the economy and improve financial stability in the coming months.
