Jameel Ahmed says the nation's economic woes have further been compounded by recent floods and a delay in the IMF program review.
KARACHI: (UrduPoint/Pakistan Point News-August 15th, 2023) Governor of the State Bank of Pakistan (SBP) Jameel Ahmad attributed the rise in inflation within Pakistan to global economic challenges.
Ahmad, speaking at a flag-hoisting event at the central bank's headquarters, noted that the global economic strains in recent times contributed to inflation escalation in Pakistan. The nation's economic woes were further compounded by recent floods and a delay in the IMF program review.
He pointed out that the country's foreign reserves and short-term issues related to the external economic sector have been addressed through a nine-month Stand-by Arrangement (SBA) with the IMF.
Jameel emphasized the SBP's accountability to the public and Parliament, noting that it communicates its goals and actions through annual and bi-annual reports. The bank also releases a Financial Stability Review (FSR) highlighting key financial system risks and evaluating its resilience.
He highlighted the SBP's progress in Digital Banking, Green Banking, and Islamic Banking, including the issuance of a Licensing and Regulatory Framework for Digital Banks based on international best practices. He also mentioned the growth of fintechs and efforts to transform the banking system into Shariah-compliant banking.
Jameel underscored the development of the next Strategic Plan, improvements in liquidity management, and the Shariah Governance framework as part of the Islamic banking industry's third five-year Strategic Plan.
Reflecting on the central bank's 76 years of achievements, the governor highlighted the independent nature of the SBP's Monetary Policy Committee. This committee now makes decisions regarding monetary policy, considering medium-term inflation targets and the country's economic conditions.
