In a press talk, he said that while last month saw the lowest inflation rate of just 0.7% — the lowest since December 1965 — this calm may not last long. “Prices will likely start increasing again from next month,” he predicted.

He explained that in 2022, Pakistan was facing severe financial challenges. Foreign reserves had dropped dangerously low, barely enough for two weeks of imports, and the exchange rate had fallen by up to 50%, he noted. The gap between the interbank and open market rates was also alarmingly wide, he maintained.

To control the crisis, strict decisions were made — including import restrictions and hiking interest rates. These tough actions helped stabilize the economy and narrow the currency rate gap between markets, he said.

The governor added that although Pakistan had a current account deficit last year, it is now in surplus due to improved policies. He also highlighted that the exchange rate is now more stable, thanks to consistent reforms.

Regarding foreign payments, he said Pakistan is required to pay $26 billion in the current financial year. Out of this, $16 billion will be refinanced or rolled over, and $8 billion has already been paid from the remaining $10 billion, he said.

He expressed cautious optimism, stating that GDP growth is expected between 2.5% to 3.5%, and could even reach 4.2% if the agriculture sector performs well.