KARACHI: The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has highlighted a series of economic and financial reforms that he says are now translating into tangible progress, steering Pakistan towards stability and inclusive growth.
Speaking at the 9th Annual Microfinance Conference organised by the Pakistan Microfinance Network (PMN) under the theme “Renaissance of Microfinance,” the SBP chief said that macroeconomic discipline, financial inclusion, and targeted regulatory changes are collectively laying the foundation for a more resilient economy.
He noted that inflation has witnessed a sharp decline and is expected to stay within the government’s target range of 5–7 percent in the medium term. Pakistan’s foreign exchange reserves, he added, have increased nearly fivefold since February 2023, thanks to prudent fiscal management and strategic interbank operations that reduced reliance on external borrowing.
Jameel Ahmad projected that economic growth will continue to gain pace in FY2025-26 as confidence returns to key sectors. “Pakistan’s economy has started showing signs of recovery, and the State Bank remains committed to policies that ensure long-term sustainability,” he said.
The central bank is also advancing reforms in the microfinance sector, shifting from rigid, rule-based regulations to principle-based frameworks aimed at flexibility and innovation. The SBP has introduced a Climate Risk Fund under the World Bank-supported Resilient and Accessible Microfinance Project to help nearly two million borrowers deal with climate-induced shocks.
Further, loan ceilings for agriculture, housing, and micro-enterprise financing have been increased to Rs 5 million, while Rs 500,000 has been set for general micro-loans. A Risk Coverage Scheme has also been launched for small farmers and underserved regions such as Balochistan, KP, AJK, and Gilgit-Baltistan, offering incentives to banks and microfinance institutions to expand their outreach.
Governor Ahmad emphasized that despite the recent flood-related setbacks, Pakistan’s strengthened economic fundamentals and policy buffers have made it more resilient to external pressures.
These initiatives, he said, reflect the SBP’s broader goal of nurturing an inclusive and sustainable financial ecosystem capable of absorbing shocks while empowering underserved communities.
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