Economy Recovered Due to Tough Decisions by Government and Central Bank: SBP Governor
Karachi ( Web News )
Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, stated that the economy has recovered due to the tough decisions taken by the government and the central bank. Speaking at the inauguration ceremony of the Women Entrepreneur Finance Code Pakistan (WeFinance Code), the Governor emphasized that past mistakes should not be repeated to avoid past challenges.
The event was attended by Deputy Governor Saleem Ullah, a representative of the Asian Development Bank (ADB), and presidents of local banks. During his speech, Governor Jameel Ahmad expressed gratitude to the ADB team for helping make the WeFinance Code possible. He stressed that achieving a sustainable economy requires macroeconomic stability.
He said that while the economy faced numerous challenges in the recent past, strict policies by the government and SBP have led to recovery. Inflation is currently at its lowest level, the current account is in surplus, SBP’s reserves are strong, and the exchange rate is stable.
He further stated that to avoid future economic crises, it is crucial not to repeat the mistakes of the past. “We must take advantage of the current opportunity and move toward a sustainable economy.” He noted that in fiscal year 2025, inflation has dropped to a nine-year low. Due to tight monetary and fiscal policies, economic decline has been controlled. Improved external accounts have stabilized the foreign exchange market, and remittances and exports have resulted in a current account surplus.
The Governor added that SBP’s foreign exchange reserves have surpassed USD 14 billion. Fiscal policies have supported monetary policies, leading to economic improvement. Economic activities in Pakistan are growing sustainably, and the promotion of the private sector is enhancing competition and quality.
Earlier, Deputy Governor Saleem Ullah highlighted that SBP has been focusing on financial inclusion for the past two decades. Through SBP’s efforts, financial inclusion has increased from 16% to 67%. However, women’s participation remains low—52% of women do not have a bank account, and only 2% take loans from banks.
He said the WeFinance Code is being introduced at a crucial time and will play an important role in increasing women’s inclusion. Twenty banks have agreed to sign the WeFinance Code. He expressed gratitude to the Asian Development Bank for their support.
Additionally, ADB Senior Finance Director Ms. Christine stated that women’s financial inclusion in Pakistan is less than one-third. However, there are significant opportunities in Pakistan’s banking sector. Through the WeFinance Code, SBP will be able to further accelerate women’s financial inclusion.
She expressed her pleasure that ADB is supporting the WeFinance Code and announced that under this program, ADB will provide USD 500 million in loans, which will be used to extend credit to hundreds of thousands of women.