Pakistan inflation linked to global economic conditions: SBP

KARACHI: The State Bank of Pakistan (SBP) Governor Jameel Ahmad has said that Pakistan’s inflation challenges can be traced to the global economic conditions, floods, and delays in review of the International Monetary Fund (IMF) program.

He made this remark when he addressed the flag hoisting ceremony on the occasion of Pakistan’s 76th Independence Day at SBP headquarters in Karachi.

Ahmad emphasized the achievements of the central bank over the past 76 years and underscored its commitment to international best practices. He highlighted the independence of the Monetary Policy Committee, which plays a crucial role in determining monetary policy based on medium-term inflation targets and the nation’s economic circumstances.

The governor noted that the recent nine-month Stand-by Arrangement (SBA) with the IMF had bolstered foreign reserves and addressed immediate issues related to the external sector. He also mentioned the SBP’s efforts towards digital banking, green banking, and Islamic banking, including the issuance of a Licensing and Regulatory Framework for Digital Banks and the growth of fintech.

Ahmad praised the resilience of Pakistan’s founding leaders, especially Quaid-e-Azam Muhammad Ali Jinnah, who led the country’s struggle for independence despite challenges. He paid tribute to those who contributed to the establishment of the State Bank of Pakistan, which symbolizes economic independence for the nation.

The ceremony included the hoisting of the national flag, a Guard of Honor by the Internal Bank Security Department, and performances of national songs by students from the Garage School of Karachi. Governor Ahmad also inaugurated an exhibition of Pakistani postage stamps titled ‘Pioneers of Freedom,’ which depicted leaders of the freedom movement, and a display of cultural dioramas representing different aspects of Pakistan’s culture.

The event provided an opportunity to reflect on Pakistan’s journey towards economic and financial independence while celebrating the spirit of the nation’s founders and their dedication to achieving freedom.