- The Governor of the SBP awaits a global positive impact despite the American prices.
- Said that the impact of American prices is “content” on the economy of Pakistan.
- Reserves are expected to reach $ 14 billion by June, said the Governor of the SBP.
The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, planned Monday that the recent drop in world oil prices would amortize the impact of the reciprocal prices offered by US President Donald Trump on Pakistan.
Trump, last week, announced a 90-day break on prices, saying that he had made the decision after more than 75 countries had contacted negotiation and did not retaliate against the United States. Earlier, it had imposed 29% of Pakistani export prices in the United States.
Speaking on Geo News “AAJ Shahzeb Khanzada Kay Sath” program, the Governor of the SBP said: “Total export (from Pakistan) to the United States is $ 5.2 billion and 4.2 billion dollars are textile-related products.”
He argued that American prices would obviously affect the textile sector, adding that its impact would be “content”.
The Governor of the SPB was of the opinion that the impact of the drop in oil prices would be greater than that of American prices on the economy of Pakistan. “We expect a global positive impact of American prices,” he added.
Ahmad also said that the government and the SBP will support industries if they were faced with a significant impact.
To another question, he said that the balance of the Pakistan current account should improve in March compared to previous months. “We are in progress to finalize the number. Normally, it is finalized by 20th of each month,” he added.
Referring to the increase in exports and funds, he said they expected earlier that the current account would be more or less than 0.5% of GDP at the end of fiscal year 25, but now they can say that it would remain in surplus.
He said that total funding for the 2010 financial year were to be around $ 38 billion. The Governor of the SBP also said that exchange reserves are expected to reach $ 14 billion by June of this year.
Earlier in the day, the Governor of SBP, reflecting on economic progress and the way to sustainable and inclusive economic growth, said that Pakistan had made significant progress on the front and the country’s macroeconomic economy.
He made these remarks while addressing the Gong ceremony held here on the Pakistan Stock Exchange (PSX) to celebrate Pakistan Financial Literacy Week 2025.
He pointed out that workers’ shipments reached a high level of all times of $ 4.1 billion in March 2025 – partially reflecting the result of government and SBP efforts to encourage the pipelines via formal channels, as well as the proper functioning of the FX national market. He said that total financial funds for financial year 25 should be around $ 38 billion.
The governor shared key initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, including efforts to increase financial inclusion from 64% to 75% by 2028, while reducing the gender difference in financial services from 34% to 25% by 2028.
“25% drop in exports from Pakistan to us”
On the other hand, Pakistan Institute of Development Economics (PIDE) warned that the reciprocal prices of 29% imposed by the American president Donald Trump are likely to strike Islamabad exports to Washington, which led to a 20-25% drop in an annual loss between $ 1.1 billion at $ 1.4 billion reported on Monday.
What can be described as a storm of brewing on the commercial horizon of Pakistan, Pide said that the reciprocal prices proposed by the United States could have a devastating impact on the country’s export sector.
In an austere political note published on April 13, 2025, the Institute provides that these prices could lead to macroeconomic instability, significant job losses and a critical reduction in exchange gains.
The study – conducted by Dr. Muhammad Zeshan, Dr Shujaat Farooq and Dr. Usman Qadir – Analyzes the consequences of a reciprocal price proposed 29% on Pakistani exports to the United States. When added at the rate of 8.6% the most favored (MFN) existing, total law could reach 37.6%.
The result would probably be a decrease of 20 to 25% of exports to the United States, reflecting by an annual loss of 1.1 to 1.4 billion dollars, the textile sector bringing the weight of the blow.
“Trade is not a zero -sum game. This is a shared value – about the creation of connections that strengthen the two savings. These proposed prices are likely to break these links,” said Dr. Nadeem Javaid, Pide vice -chancellor, in a solid declaration accompanying a new political note. “At Pide, we see this moment not only as a threat, but as a catalyst – for the correction of courses towards a more resilient, diversified and strategic export for Pakistan.”
During fiscal 2024, Pakistan exported $ 5.3 billion in goods to the United States, making it the largest unique export market in the country. A significant part of these exports was textiles and clothes, which are already faced at prices up to 17%.
If the prices proposed are implemented, the competitiveness of Pakistan prices would be severely eroded, perhaps allowing regional competitors such as India and Bangladesh to capture market share. The economic consequences would extend beyond textiles.