The State Bank of Pakistan (SBP) Governor, Jameel Ahmad, has expressed optimism about Pakistan’s economic outlook, citing significant improvements in key macroeconomic indicators. In a message delivered by Executive Director Muhammad Haroon Rasheed at SBP’s Independence Day celebrations, the governor highlighted the government’s and central bank’s effective measures in stabilizing the economy.
One of the most notable achievements has been the substantial reduction in inflation. The inflation rate dropped from 28.3% in July 2023 to 11.1% in July 2024, indicating a significant improvement in price stability.
Additionally, the current account deficit has narrowed considerably, decreasing from $17.48 billion in FY21-22 to $0.68 billion in FY24. This positive development is attributed to a combination of factors, including increased foreign remittances and reduced imports.
Foreign remittances have seen a steady increase, reaching $30.25 billion in FY24 compared to $27.33 billion in FY23. This influx of foreign currency has provided crucial support to the economy.
SBP governor also highlighted the positive trends in foreign currency reserves, which have risen to $9.3 billion despite ongoing debt repayments. This increase is a testament to the government’s efforts to strengthen the country’s foreign exchange position.
Furthermore, the governor emphasized the absence of import restrictions and the significant growth in IT exports, which have contributed positively to the economy.
To further bolster economic growth, SBP has encouraged banks to increase lending to agriculture and small and medium enterprises (SMEs). By providing greater access to financing, the central bank aims to unlock the potential of these sectors.
In terms of financial inclusion, SBP has implemented various initiatives, such as the National Financial Inclusion Strategy, the National Financial Literacy Programme, and Banking on Equality, to ensure that the general public, including low-income segments, has access to financial services.
One of the key innovations introduced by SBP is Raast, Pakistan’s first instant payment system. Raast enables seamless digital transactions between individuals, businesses, and government entities, promoting financial efficiency and convenience.
SBP governor also emphasized the importance of adopting new and innovative strategies to address the country’s long-standing economic challenges. He highlighted the growing importance of digital innovations and the need to enhance cybersecurity measures to protect against emerging threats.
To promote financial literacy, SBP organized the first edition of Pakistan Financial Literacy Week in March 2024. The theme of the week, “Digital Bankari – Fori aur Asaan,” focused on empowering individuals to make informed financial decisions through digital solutions.