State Bank of Pakistan (SBP) Governor Jameel Ahmad announced that Pakistan's external debt servicing is expected to decline to $21.5 billion in fiscal year 2027, down from $26.5 billion in the previous fiscal year. The projection comes as part of the central bank's annual economic outlook, highlighting a potential easing of financial pressure on the country. The reduction is attributed to improved fiscal management and a more stable external environment.

Ahmad emphasized that the decline in debt servicing costs would provide much-needed relief to the government and help stabilize the economy. The forecast also suggests that foreign exchange reserves will grow more rapidly this year, supporting the country's ability to meet its international obligations. This development is seen as a positive sign for Pakistan's economic resilience in the face of ongoing challenges.

The SBP Governor noted that the central bank remains committed to maintaining macroeconomic stability and ensuring sustainable growth. The updated projections reflect the government's efforts to address inflation and improve public finances. These measures are expected to contribute to a more favorable investment climate in the coming years. (propakistani.pk)