Macroeconomic Stability to Catalyze Inclusive Economic Growth: Governor SBP

State Bank of Pakistan (SBP) Governor Jameel Ahmad emphasized the importance of durable macroeconomic stability and inclusive growth during his keynote address at the ninth Annual Microfinance Conference in Karachi. The event, hosted by the Pakistan Microfinance Network, focused on the “Renaissance of Microfinance” and the sector’s role in driving economic development.

Governor Ahmad noted that recent policy and regulatory measures have helped stabilize Pakistan’s economy, with inflation declining sharply and projected to remain within the government’s 5–7 percent target range over the medium term, despite temporary pressures from recent floods. He highlighted that the country’s foreign exchange reserves are now nearly five times higher than in January 2023, crediting strategic interbank purchases for strengthening buffers and reducing the need for costly external borrowing.

He also pointed to improved debt dynamics and a recovering growth trajectory, with expectations for further acceleration in the current fiscal year, even as the agriculture sector faces temporary setbacks from flood damage.

Reflecting on two decades of progress, Ahmad reaffirmed SBP’s commitment to microfinance as a tool for inclusive growth. He announced comprehensive revisions to the Prudential Regulations for Microfinance Banks, shifting from a rules-based to a principle-based approach. Key reforms include removing restrictions on microenterprise lending, introducing a dedicated agriculture and livestock loan category, and raising loan limits to Rs. 5 million for agriculture, microenterprise, and housing, and Rs. 500,000 for general loans.

The Governor also announced the launch of a Climate Risk Fund under the World Bank-funded Resilient and Accessible Microfinance Project, aimed at supporting two million borrowers with liquidity facilities to mitigate climate shocks. Additionally, a new Risk Coverage Scheme for Small Farmers and Underserved Areas will offer first-loss coverage and operational incentives to expand lending in regions such as Balochistan, Khyber Pakhtunkhwa, Azad Jammu & Kashmir, and Gilgit Baltistan.

Under the National Financial Inclusion Strategy 2028, Ahmad reported that financial inclusion in Pakistan rose from 47 percent in 2018 to 67 percent in June 2025, while the gender gap in financial access narrowed from 47 percent to 30 percent. He credited digital initiatives like Raast, Asaan Mobile Account, Roshan Digital Account, and the launch of digital banks, as well as the Banking on Equality Policy, for these gains. The SBP aims to expand financial inclusion to 75 percent and reduce the gender gap to 25 percent by 2028.

Governor Ahmad urged microfinance institutions to strengthen risk management, adopt digital tools for credit scoring, enforce internal audits, and maintain adequate liquidity. He stressed the importance of good governance, transparent communication, and climate-risk mapping for long-term sustainability.

He concluded by reaffirming the SBP’s commitment to working with the microfinance industry to strengthen resilience, protect customers, and expand outreach, ensuring microfinance continues to foster inclusive and sustainable growth in Pakistan.

The post Macroeconomic Stability to Catalyze Inclusive Economic Growth: Governor SBP appeared first on ProPakistani.

State Bank of Pakistan (SBP) Governor Jameel Ahmad emphasized the importance of durable macroeconomic stability and inclusive growth during his… Read More

The post Macroeconomic Stability to Catalyze Inclusive Economic Growth: Governor SBP appeared first on ProPakistani.