KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has “put blame” on the global economic conditions for higher inflation in Pakistan.
“The global economy remained under stress in the near past that also resulted in an increase in inflation in Pakistan. Recent floods and a delay in IMF programme review further aggravated the economic miseries of the country,” he said while speaking at a flag-hoisting ceremony at the central bank’s headquarters on Monday.
He said the nine-month Stand-by Arrangement (SBA) agreed with the IMF has improved the country’s foreign reserves and largely resolved near term issues pertaining to the external sector of the economy.
Jameel said the SBP also keeps abreast Parliament of its targets and activities through annual and bi-annual reports since it is accountable to the people’s parliament and public. Besides, it also issues Financial Stability Review (FSR) that highlights the main risks facing the financial system and assesses the resilience of the financial system to those risks.
He observed that the SBP was making significant strides towards Digital Banking, Green Banking and Islamic Banking.
The central bank’s chief especifically mentioned issuing a Licensing and Regulatory Framework for Digital Banks in line with international best practices, growth of fintechs and practical efforts for transformation of the banking system into Shariah-compliant banking.
Jameel also termed development of next Strategic Plan, improvement in liquidity management and Shariah Governance framework under the third five-year Strategic Plan of Islamic banking industry.
Recalling the extraordinary achievements of the central bank during the last 76 years, the governor said following the best international practices, the SBP’s Monetary Policy Committee is now an independent forum that decides about the monetary policy, keeping in view medium term inflation targeting and the country’s economic conditions.
