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SBP Governor: Agri Output Dips, GDP Growth Revised to 3%
SBP Governor Jamil Ahmed says agri output dropped from 7% to 1%, GDP growth now expected at 3% instead of 4.1%. Remittances hit record $4.1B in March.
ND
by News Desk
2025-04-15
SBP Governor: Agri Output Dips, GDP Growth Revised to 3%

Governor of the State Bank of Pakistan (SBP), Jamil Ahmed, acknowledged a significant drop in agricultural output from 7% to just 1%, which has led to a downward revision of the national GDP growth rate to 3%, down from the earlier projection of 4.1%.

Speaking at a function yesterday, Governor Ahmed pointed out that the country’s industrial and power generation sectors also witnessed negative growth. Additionally, inflation has climbed by 7% since April.

Reflecting on economic challenges in 2022, he said Pakistan’s foreign exchange reserves had fallen to the equivalent of just two weeks of imports, and the exchange rate had plummeted by 50%. A stark difference emerged between the interbank and open market rates, prompting the SBP to implement tough policy measures including import restrictions and high interest rates.

“In March 2025, fiscal growth had touched a low of 0.7%, but it is expected to rise again from this month,” he said.

On a positive note, the SBP governor stated that Pakistan’s current account, which was in deficit last year, has now shifted to a surplus due to improved financial management. This has led to a more stable exchange rate and narrowed the gap between interbank and open market rates.

He further disclosed that out of $26 billion in external payments, $16 billion have been refinanced or rolled over. Of the remaining $10 billion, $8 billion has already been paid, with the rest due by June 30.

Highlighting a major milestone, Ahmed said that remittances from overseas Pakistanis crossed $4.1 billion in March 2025 — the highest monthly figure ever. According to a statement by the SBP:

  • $987.3 million came from Saudi Arabia,
  • $842.1 million from the UAE,
  • $684 million from the UK,
  • and $419.5 million from the US.

Speaking to a private TV channel, he projected that remittances will reach $38 billion by June 30, with domestic reserves hitting $14 billion.

When asked about the potential impact of Trump-era tariffs on Pakistan’s economy, Ahmed noted that Pakistan's exports to the US stand at $5.2 billion. Even if minor trade impacts arise, the loss could be offset by lower oil prices. “Our oil import bill has been reduced by $1 billion, which will provide relief to the industrial sector,” he added.

 
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