SBP chief warns of inflation spike, assures on debt

State Bank of Pakistan (SBP) Governor Jameel Ahmad cautioned on Wednesday that budgetary measures are expected to increase inflation but assured that the external sector will remain manageable in the current fiscal year, thanks to debt rollovers from friendly countries. Mr Ahmad testified before the National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, and provided insights into the country’s foreign and domestic sector performance for the ongoing fiscal year. The SBP chief noted that the total outstanding debt payment for FY25 stands at $26.2 billion. Of this, more than $16bn will be rolled over by friendly countries, leaving a balance of $10bn to be paid by June 30 next year.