State Bank of Pakistan (SBP) Governor Jameel Ahmad blamed global factors for causing high inflation in Pakistan.

“World economy remained under pressure in near past that also resulted in an increase in inflation in Pakistan and these conditions were further aggravated due to floods and delay in IMF program review,” he said while addressing the flag hoisting ceremony to commemorate Pakistan’s 77th Independence Day at the SBP headquarters in Karachi.

He also stated that the nine-month Stand-by Arrangement (SBA) inked with the IMF has increased the country’s foreign reserves and in essence lessened near-term external sector challenges.

Jameel mentioned that the central bank is seeing considerable progress in the areas of digital banking, green banking, and Islamic banking. He touched upon the subject of introducing a Licensing and Regulatory Framework for Digital Banks, the expansion of fintech, and practical steps to transforming the overall financial system.

The central bank governor briefly mentioned the development of a new Strategic Plan for improving liquidity management and the Shariah Governance framework of the Islamic banking industry.

He paid glowing tributes to Quaid-e-Azam Muhammad Ali Jinnah and his team who won a sovereign state for Muslims of the subcontinent amid adversity.

Jameel also recalled the harsh circumstances that Pakistan’s fledgling state faced in its early days, and how it was forced to rely on outsiders to conduct financial and banking transactions. These circumstances led to the creation of SBP to ensure the country’s economic independence, he added.

The ceremony was attended by the regulator’s senior management and a significant number of SBP officials and their families. It began with the Governor SBP hoisting the National Flag while a band of Pakistan Navy played the national anthem.

Source: Pro Pakistani