State Bank of Pakistan (SBP) Governor Jameel Ahmad has announced an increase in the country’s foreign currency reserves, while highlighting that the overall business environment remains favorable for economic growth.
Speaking to the media on Thursday at the Multan Chamber of Commerce, Ahmad noted, “An improvement in exchange rates has been observed as a result of these positive economic developments.”
He also revealed plans to expand the credit limit for the Prime Minister’s Youth Scheme, emphasizing that the initiative was carefully planned before its launch. “We didn’t draft the scheme on a whim; it was well-thought-out. However, banks need some time to implement it,” Ahmad explained.
The governor disclosed that the credit limit for small businesses had been raised to Rs100 million, alongside a relaxation of certain regulatory conditions set by the central bank.
Regarding the current policy rate, Ahmad confirmed it stood at 12 percent, and stressed the need to focus on developing new products to boost exports. “Increasing exports is essential, and we must introduce new products while addressing the concerns of large-scale farmers and exporters,” he added.
On the issue of Letters of Credit (LC) for imports, Ahmad urged businesses to report any persistent problems to the central bank. He also confirmed that SBP had started phasing out certain financing schemes. “The discussions often served as a means to resolve economic issues. The conditions in 2022 were particularly challenging,” he noted.
Ahmad reiterated that SBP had implemented a strict monetary policy with the goal of strengthening the economy.
Expressing gratitude to the Multan Chamber of Commerce for its invitation, the SBP governor acknowledged its vital role in addressing commercial concerns. He emphasized the importance of policy reforms to tackle economic challenges and called for regular forums to discuss critical issues.
Acknowledging that Pakistan, like the rest of the world, faced economic difficulties during the COVID-19 pandemic, Ahmad reaffirmed the SBP’s commitment to supporting exporters and ensuring a stable economic outlook.
