Pakistan’s foreign exchange reserves have recently surged to cover two months of imports, reaching a total of $10 billion, following the arrival of the first tranche from the International Monetary Fund (IMF). This $1.03 billion disbursement is part of the $7 billion Extended Fund Facility (EFF) agreed upon in July.
Jameel Ahmad, Governor of the State Bank of Pakistan (SBP), confirmed that this inflow has eased pressure on the Pakistani rupee and improved the supply of dollars in the market. He noted an increase in remittances from overseas workers and a decline in inflation, both contributing positively to the country’s monetary policy .
Ahmad expressed optimism for further improvements in foreign exchange reserves and highlighted the government’s fiscal situation as having stabilized, with early repayments to commercial banks currently being made .
In addition to addressing immediate economic concerns, the SBP governor outlined a vision for the future of Pakistan’s banking sector, aiming to launch fully digital banking by 2025 to enhance financial inclusion . He also mentioned plans to double financing for Small and Medium Enterprises (SMEs) over the next five years, indicating a strategic push towards modernization and innovation in the financial sector.
