The State Bank of Pakistan’s Governor, Jameel Ahmad, stated on Monday that the nation’s $3 billion Standby Arrangement (SBA) with the International Monetary Fund (IMF) has led to a boost in the country’s foreign reserves and has effectively addressed immediate issues impacting the external sector of the economy.
These comments were made by Ahmad as part of the Independence Day flag-hoisting event at the central bank’s location in Karachi to mark Pakistan’s 76th year of independence.
“The IMF-approved nine-month stand-by arrangement has bolstered the country’s foreign reserves and effectively tackled immediate challenges concerning the external facet of the economy,” remarked Ahmad.
Currently, the State Bank of Pakistan holds forex reserves amounting to $8.04 billion. Addressing the audience, Ahmad highlighted the remarkable achievements of the central bank over the past 76 years, notably its success in gaining the trust of the Pakistani populace.
Following global best practices, the SBP’s Monetary Policy Committee (MPC) now operates as an independent forum that formulates monetary policies based on medium-term inflation targets and the nation’s economic conditions. To ensure transparency, the SBP regularly communicates its objectives and activities to Parliament through annual and bi-annual reports, as it is accountable to the parliamentary body and the general public.
Additionally, the SBP issues a Financial Stability Review (FSR) that identifies major risks facing the financial system and evaluates its resilience against these risks, Ahmad explained. Amid challenging global economic conditions and exacerbated by factors like floods and delays in the IMF program review, Ahmad pointed out that inflation had risen in Pakistan.
The governor underscored the SBP’s progress in advancing digital banking, green banking, and Islamic banking. He specifically mentioned the implementation of licensing and regulatory frameworks for digital banks, the growth of fintech, and efforts to transition the banking system into Shariah-compliant banking. Ahmad also lauded the development of the next strategic plan, enhancements in liquidity management, and the Shariah governance framework within the third five-year strategic plan of the Islamic banking sector.
He paid homage to Quaid-e-Azam Muhammad Ali Jinnah and his compatriots for their resilience in leading the freedom struggle and securing an independent state for the Muslims of the subcontinent.
Ahmad recalled the challenges faced by the newly formed Pakistan and its reliance on external entities for financial and banking activities, which ultimately led to the establishment of the SBP for the nation’s economic autonomy.
The ceremony, attended by senior bank management and a considerable number of SBP officials and their families, commenced with the raising of the national flag by the SBP Governor, accompanied by the national anthem performed by a Pakistan Navy band. The Internal Bank Security Department (IBSD) presented the Governor with a Guard of Honour in immaculate attire. A choir of students from the Garage School of Karachi delivered heartfelt national songs, earning high praise from the audience.
To mark Independence Day, the governor also participated in a tree-planting activity. During the event, an exhibition titled ‘Pioneers of Freedom’ showcased Pakistani postage stamps, an artistic series by Saeed Akhtar, depicting leaders of the freedom struggle who valiantly opposed foreign rule. Ahmad also inaugurated an exhibit featuring small-scale cultural dioramas created by renowned artist Abdul Kareem Solangi, providing a dynamic representation of various cultural facets of Pakistan.
