STATE Bank of Pakistan (SBP) Governor Jameel Ahmed stated on Thursday that the country is on track to meet its economic targets, with its debt levels and balance of payments remaining under control. Speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Ahmad said that inflation is expected to decline further in January, while interest rates will also decrease due to improvements in debt repayment. The Governor attributed the positive trends to an increase in exports and remittances, which have contributed to a better current account balance. He emphasized the need to further boost exports, as this will lead to improvements in the current account and balance of payments.
The central bank, under the leadership of Jameel Ahmed, has taken a number of initiatives aimed at boosting remittances and exports and these policy measures have started paying dividends. The remittances are continuously on the rise and there are expectations that the country would receive record remittances during the current financial year as these increased by over 33% in the first half of the year. The decision of the SBP to decrease the interest rates has widely been hailed by the business community and the Governor has hinted at further reduction in months to come, which will surely help accelerate the pace of economic activities. The business community is demanding reduction of the interest rate to a single digit and there are indications this will be met in future revisions. The bank also deserves credit for its positive role in the stabilization of the local currency and this will go a long way in restoring the confidence of the business community. Achieving the goal of a Riba-free economy has become a constitutional obligation after incorporation of a provision in this regard in the 26th Constitutional Amendment. The State Bank has consistently tried to create an enabling environment for the purpose and it is continuously engaged in efforts to promote Islamic finance in the country. The Governor has exhorted the business community to work for increasing exports but the cherished objective cannot be realized without harmonization of governmental policies and a genuine commitment on the part of exporters of goods and services to play their role aggressively and establish Pakistan’s credentials as a symbol of quality and innovation.
