Category: Money & Banking

Karachi, August 14, 2023 – The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, proudly recounted the remarkable achievements of the central bank over the past 76 years.

Speaking at the flag hoisting ceremony held at the SBP headquarters in Karachi to celebrate the 76th Independence Day, Governor Ahmad highlighted the pivotal role the bank has played in the nation’s economic journey.

Governor Ahmad began by honoring the memory of Quaid-e-Azam Muhammad Ali Jinnah and the freedom fighters who struggled to secure an independent state for the Muslims of the subcontinent. He acknowledged the challenges faced by Pakistan during its early days, particularly the reliance on external support for financial and banking activities. It was in response to these challenges that the SBP was established, ensuring the country’s economic independence.

The ceremony, attended by senior bank officials and their families, commenced with the dignified hoisting of the national flag by Governor Ahmad, accompanied by the soul-stirring national anthem performed by a Pakistan Navy band. A Guard of Honor was presented to the Governor by the Internal Bank Security Department (IBSD), and students from the Garage School of Karachi delivered patriotic national songs, adding to the celebratory atmosphere. In a symbolic gesture, Governor Ahmad planted a tree to commemorate the Independence Day.

Addressing the gathering, Governor Ahmad highlighted several significant achievements of the SBP over the years. He emphasized the bank’s commitment to transparency and accountability, mentioning the independent Monetary Policy Committee that follows international best practices to decide on monetary policy, considering medium-term inflation targets and the nation’s economic conditions. The SBP regularly informs the Parliament about its targets and activities through annual and bi-annual reports, underscoring its accountability to the people’s representatives and the public.

The Governor also spoke about the SBP’s role in maintaining financial stability. The issuance of the Financial Stability Review (FSR) has been a critical step in identifying and assessing risks facing the financial system, ensuring its resilience. He acknowledged the recent global economic pressures, which, combined with domestic factors such as floods and delays in the IMF program review, led to increased inflation in Pakistan. However, the SBP’s collaboration with the IMF through a nine-month Stand-by Arrangement (SBA) improved the country’s foreign reserves and resolved immediate external sector concerns.

Governor Ahmad emphasized the SBP’s progress in digital banking, green banking, and Islamic banking. He highlighted the issuance of a Licensing and Regulatory Framework for Digital Banks, the growth of fintechs, and the bank’s efforts to transform the banking system into one that complies with Shariah principles. The ongoing development of the third five-year Strategic Plan for the Islamic banking industry, with improvements in liquidity management and Shariah governance, also received mention.

As part of the celebration, an exhibition of Pakistani postage stamps titled “Pioneers of Freedom” showcased the brave leaders of the freedom movement. Additionally, a display of cultural dioramas created by respected artist Abdul Kareem Solangi was inaugurated, capturing various cultural aspects of Pakistan. Governor Ahmad and other dignitaries praised the artistic work and celebrated the rich heritage of the nation.

The 76th Independence Day celebration at the SBP served as a moment of reflection on Pakistan’s journey and the central role the State Bank has played in shaping the nation’s economic landscape.

READ MORE: Pakistan Celebrates 76th Independence Day with Passion