Pakistan's central bank launches 3-year research roadmap for smarter economic policymaking

ISLAMABAD: The State Bank of Pakistan has launched its first-ever Research Agenda for 2026-2029, outlining a comprehensive roadmap aimed at strengthening evidence-based policymaking and addressing the country’s most pressing economic challenges, said a statement from the country's central bank on Thursday.

According to the statement, the initiative seeks to deepen research on inflation, financial stability, and long-term economic development as Pakistan navigates an increasingly complex global and domestic economic environment.

The SBP statement added that rapid technological change, climate-related disruptions, geopolitical uncertainties, and persistent structural weaknesses have made economic policymaking more challenging than ever. 

"The new agenda is designed to provide policymakers with stronger analytical tools to respond to these evolving realities."

The statement further said that the three-year framework is built around three major themes: Inflation Dynamics and Monetary Policy; Financial Sector Deepening; Soundness and Efficiency; and Structural Transformation and Economic Development.

"Under the first theme, the State Bank plans to examine inflation behavior, monetary policy transmission, inflation expectations, and the potential adoption of a flexible inflation-targeting framework. The agenda also highlights emerging issues such as digital finance, virtual assets, central bank digital currencies, artificial intelligence, and the transition towards a more Shariah-compliant banking system," it elaborates.

The statement further explains that the second theme focuses on strengthening Pakistan’s financial sector by exploring ways to improve financial inclusion, expand credit access, enhance banking efficiency, and evaluate the impact of liquidity management and regulatory policies on economic growth.

"The third theme addresses broader structural challenges facing the economy, including informality, export competitiveness, foreign investment, remittances, climate risks, technological change, and governance reforms needed to support sustainable growth," the statement added.

Importantly, the SBP has invited academics, policymakers, researchers, and industry experts to collaborate on the agenda. The central bank also plans to support selected priority research projects, encouraging a wider national effort to generate actionable policy recommendations.

Officials say the initiative aligns with SBP Vision 2028 and will help strengthen the foundations for price stability, financial resilience, and inclusive economic development in Pakistan.