He noted that inflation is likely to cross 7 percent in June, while the cash reserve requirement has been reduced from 6 percent to 5 percent to ease liquidity pressures.

The governor highlighted that foreign exchange reserves are gradually improving, offering some breathing space to the economy. He added that inflation is expected to remain between 5 and 7 percent, both in the remaining period of the current fiscal year and throughout the next one.

On the external front, Jameel Ahmad pointed out that imports have picked up, while exports may fall by around 6 percent this year, reflecting global and domestic challenges. He said the current account deficit is expected to stay within 0 to 1 percent, a level seen as manageable under present conditions.

The SBP governor stressed that economic growth does not deliver instant results, as its real impact usually becomes visible after one and a half to two years. However, he added that early signs of recovery are beginning to surface.

He also shared encouraging data from the industrial sector, stating that large-scale manufacturing has shown continuous growth for the past eight months. During the first five months of the current fiscal year, Large-Scale Manufacturing (LSM) recorded a growth of 6 percent, signaling improving industrial momentum.

It is worth recalling that in its previous meeting on December 15, 2025, the Monetary Policy Committee (MPC) surprised markets by cutting the policy rate by 50 basis points, bringing it down to the current level of 10.5 percent.