At an Independence Day ceremony in Karachi, State Bank of Pakistan Governor Jameel Ahmad reviewed recent economic and financial-sector developments and set out the central bank’s focus on sustaining price stability, with inflation intended to remain within a 5–7% range. The address also highlighted external-sector improvements and a set of digital and payments initiatives aimed at supporting financial inclusion. The Governor cited inflation falling from 38% in May 2023 to 11.8% by May 2024 and 3.2% by June 2025, alongside seven policy rate reductions since June 2024 that lowered the rate from 22% to 11%. On the external position, he pointed to foreign exchange reserves rising from USD 4.4 billion at end-FY23 to USD 14.5 billion at end-FY25, a current account surplus of USD 2.1 billion (the first in 14 years), and record remittances of USD 38.3 billion; he added that the reserves buildup occurred without an increase in foreign debt and noted credit rating upgrades. On financial infrastructure, the speech referenced the spinning-off of Raast, Pakistan’s instant payment system, into a separate subsidiary, wider payment modernisation measures, and a recently introduced account-opening framework enabling accounts to be opened without visiting a bank branch.
State Bank of Pakistan 2025-08-14
State Bank of Pakistan Governor highlights inflation progress, policy rate cuts to 11% and Raast spinoff in Independence Day address
State Bank of Pakistan Governor Jameel Ahmad, at an Independence Day ceremony, emphasized the central bank's focus on maintaining price stability with inflation targeted at 5–7%. He highlighted economic improvements, including a reduction in inflation from 38% to 3.2% and foreign exchange reserves rising to USD 14.5 billion by end-FY25. The Governor also noted advancements in financial infrastructure, such as the spin-off of Raast and new digital payment initiatives to enhance financial inclusion.