Jameel Ahmad, Governor of the State Bank of Pakistan, has underscored the importance of long-term macroeconomic stability as the foundation for inclusive and sustainable economic growth in the country. Speaking at the ninth Annual Microfinance Conference in Karachi, hosted by the Pakistan Microfinance Network, he outlined a vision where sound economic fundamentals empower communities, expand financial inclusion, and build resilience in the financial system.
Themed “Renaissance of Microfinance,” the event brought together stakeholders from across the financial and development sectors. In his keynote address, Ahmad highlighted that Pakistan has entered a phase of relative macroeconomic stability, supported by targeted policy and regulatory actions over the past few years.
He noted that inflation has fallen sharply and is projected to stay within the government’s medium-term target range of 5 to 7 percent. Despite temporary upward pressure from recent floods, monetary stability remains on track. He pointed out that Pakistan’s foreign exchange reserves are now almost five times higher than the level recorded in February 2023, a result of strategic interbank purchases that helped avoid additional borrowing at higher interest rates.
Ahmad credited coordinated monetary and fiscal efforts for improving debt dynamics and easing pressure on the external sector. He added that the economy is on a path to recovery, with growth expected to strengthen in the ongoing fiscal year, even as the agriculture sector faces challenges due to flood impacts.
Reflecting on two decades of progress in financial inclusion, Ahmad reaffirmed SBP’s commitment to microfinance as a catalyst for equitable growth. He revealed that the central bank has revised Prudential Regulations for Microfinance Banks, moving from a rules-based to a principle-based approach. These reforms include removing restrictions on microenterprise lending, introducing an Agriculture and Livestock loan category, and increasing loan limits to Rs5 million for agriculture, microenterprise, and housing, and Rs500,000 for general loans.
To support vulnerable communities against climate shocks, SBP has launched a Climate Risk Fund under the World Bank-funded Resilient and Accessible Microfinance Project, which will provide liquidity facilities to around two million borrowers. In addition, the central bank, in partnership with the government, has initiated a Risk Coverage Scheme for small farmers and underserved regions including Balochistan, Khyber Pakhtunkhwa, Azad Jammu & Kashmir, and Gilgit Baltistan, offering 10 percent first-loss coverage and operational incentives.
Ahmad emphasized the achievements under the National Financial Inclusion Strategy 2028. Financial inclusion has grown from 47 percent in 2018 to 67 percent in 2025, while the gender gap in financial access has narrowed from 47 percent to 30 percent. He attributed this to digital initiatives such as Raast, Asaan Mobile Account, Roshan Digital Account, and the launch of digital banks, alongside the Banking on Equality Policy aimed at improving women’s access to finance.
Looking ahead, Ahmad reaffirmed the goal of expanding financial inclusion to 75 percent and further narrowing the gender gap to 25 percent by 2028. He urged microfinance institutions to enhance their risk management systems, leverage alternative data sources for credit scoring, strengthen internal audits, and maintain adequate liquidity buffers.
The governor stressed that strong corporate governance, climate-risk mapping, and transparent communication are essential to ensure sector resilience. He reiterated SBP’s commitment to supporting the microfinance industry in building an inclusive, sustainable, and shock-resilient financial ecosystem.
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