The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has confirmed that newly designed currency notes will not be available for circulation by the upcoming Eid-ul-Fitr, addressing widespread public anticipation around the launch of new banknotes. Speaking with senior journalists in Karachi, the SBP governor also provided a broad overview of Pakistan’s current economic indicators, monetary policy dynamics, remittance inflows, export performance, and progress in digital finance initiatives.
According to Jameel Ahmad, the delay in the issuance of new currency notes is primarily linked to procedural and administrative requirements. He explained that the designs of the new notes are currently awaiting approval from the federal cabinet. Once the approval process is completed, the printing and production phase will begin, which will require additional time before the notes can be introduced into circulation. As a result, the new notes will not be available for public use during the upcoming Eid season. He added that the redesigned currency will incorporate enhanced security features, using advanced technology to make it easier for the public and financial institutions to distinguish genuine notes from counterfeit ones.
Addressing questions about Pakistan’s banking sector, the SBP governor revealed that three major foreign banks have expressed interest in opening branches in Pakistan. While discussions are ongoing, he noted that the identities of these banks and their countries of origin have not yet been disclosed. The expressed interest reflects a degree of confidence in Pakistan’s financial system and regulatory framework, particularly at a time when the country is working to strengthen financial stability and improve the investment climate.
Jameel Ahmad also clarified several misconceptions related to interest rates and their impact on government finances. He stated that lower interest rates do not automatically result in savings for the government. Instead, a reduction in interest rates leads to lower profits for the State Bank of Pakistan, which in turn reduces the amount transferred to the government. He highlighted that the SBP contributed PKR 2.4 trillion to the government in the previous year, underscoring the central bank’s role as a significant source of non-tax revenue.
On the external sector, the SBP governor shared an optimistic outlook for remittances, indicating that inflows are expected to exceed the set targets and may reach as high as $42 billion. He pointed to improved formal channels and policy measures as contributing factors. In terms of exports, he noted that non-food exports have recorded a growth of around 5 to 6 percent. While food exports, particularly rice, have seen a decline, he expressed confidence that government support measures would help stabilize and revive performance in the coming months.
Digital finance and financial inclusion were also key areas of discussion. Jameel Ahmad stated that the SBP is targeting the digitization of two million merchants during the current year, a move aimed at expanding the digital payments ecosystem and reducing reliance on cash-based transactions. He also highlighted notable improvements in small and medium enterprise financing, describing it as a critical area for economic growth and employment generation. Additionally, he indicated that lower interest rates are expected to improve access to home loans, making housing finance more accessible to a larger segment of the population.
The remarks by the SBP governor reflect a cautious yet forward-looking assessment of Pakistan’s economic and financial landscape. While challenges remain, particularly in areas such as currency management and export diversification, the central bank’s focus on digital finance, financial inclusion, and structural reforms signals an effort to support sustainable economic growth and stability in the period ahead.
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