The mistakes of the past should not be repeated, we have to seize the opportunity and move towards a sustainable economy, Jamil Ahmed
Karachi: The Governor of the State Bank has said that the economy has recovered due to the tough decisions of the government and the central bank, and the mistakes of the past should not be repeated.
Governor of the State Bank Jamil Ahmed, Deputy Governor Salimullah, and a representative of the Asian Development Bank addressed the inauguration ceremony of the Women Entrepreneur Finance Code Pakistan by the State Bank, while the presidents of local banks were also present at the ceremony.
Addressing the ceremony, Governor of the State Bank Jamil Ahmed said that he is grateful to the Asian Development Bank team for making the We Finance Code possible. Achieving a sustainable economy requires macroeconomic stability.
He said that in the recent past, our economy faced many problems, but the tough decisions of the government and the State Bank have led to economic recovery. Currently, inflation is at its lowest level, the current account is in surplus, the State Bank’s reserves are good, and the exchange rate is stable.
The Governor of the State Bank said that in order to avoid past problems, it is necessary not to repeat the mistakes of the past. We have to take advantage of this opportunity and move towards a sustainable economy.
He said that inflation has fallen to a 9-year low in FY25. Due to tight monetary and fiscal policies, we have been able to control the economic slowdown. The foreign exchange market is stable due to the better performance of external accounts. The current account has become surplus due to remittances and exports.
He added that the foreign exchange reserves of the State Bank have exceeded $14 billion. Fiscal policy supported the monetary policy, which led to economic improvement. Economic activities are growing sustainably in Pakistan. Competition and quality are improving with the development of the private sector.
Governor State Bank Jamil Ahmed further said that the past few years have been difficult for the economy, but with the efforts of the government and the State Bank, we have come out of the difficulty. Inflation is low, the economic scenario has improved. The focus is on reforms, increasing the tax base, government institutions and privatization.
He said that they are focusing on increasing the financial inclusion of women. 22 percent of women are part of the country’s workforce. Banks face problems with mobility, financial access and digital onboarding. Women’s exclusion from the financial system is the reason for low savings and low investment. State Bank has been appointed as the National Code Champion of We Finance. We will take this program to financial institutions, educational institutions and the private sector. 20 banks have joined this effort. We will encourage the remaining stakeholders to be part of this effort.
Earlier, Deputy Governor Salimullah, while addressing the gathering, said that the State Bank has been focusing on increasing financial inclusion for 2 decades. Due to the efforts of the State Bank, financial inclusion has increased from 16 percent to 67 percent. Women’s participation is low, 52 percent of women do not have a bank account, while 2 percent of women are taking loans from banks.
He said that the We Finance Code is being introduced at a very important time. It will play an important role in the inclusion of women in the Women Code. 20 banks have expressed their willingness to sign the We Finance Code. We express our gratitude to the Asian Development Bank.
In addition, Senior Finance Director ADB Ms. Christine said in her speech that women’s financial inclusion in Pakistan is less than one-third. There are vast opportunities available in Pakistan’s banking sector. Through the V Finance Code, the State Bank will be able to further accelerate women’s financial inclusion.
She said that I am happy that ADB is supporting the V Finance Code. Under the V Finance Code program, it will provide $500 million in loans. Through the program, it will provide loans to 100,000 women.
