State Bank of Pakistan governor says IMF deal boosts forex reserves

State Bank of Pakistan (SBP) Governor Jameel Ahmad has said that the Islamic Republic of Pakistan’s $3 billion Standby Arrangement (SBA) with the major financial agency International Monetary Fund (IMF) helped to increase the country’s foreign reserves.

SBP governor remarks came on Monday during the flag-hoisting ceremony, commemorating the 77th Independence Day of Pakistan in Karachi, the largest city in the country.

According to The News, Jameel Ahmad also said that the SBA helped to stabilize the economy’s external sector. He further said, “The nine-month stand-by arrangement agreed with the IMF has resolved near-term issues pertaining to the external sector of the economy.”

Pakistan’s forex reserves under Standby Arrangement is $8.04 billion. The SBP ‘s Monetary Policy Committee (MPC) is also now an independent forum. 

While addressing the gathering on 14 August, he also lauded the achievement of the SBP. He highlighted the achievements of the central bank during the last 76 years. The SBP also prepares bi-annual reports for the people’s parliament and the public. The SBP is also tasked with issuing a Financial Stability Review (FSR) to highlight the risks related to the financial system of the country. The SBP governor also lauded the SBP over digital banking, green banking, and Islamic banking. 

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He also paid tribute to Quaid-e-Azam Muhammad Ali Jinnah, the founder of Pakistan. The SBP governor lauded him for winning an independent state for Muslims of the subcontinent. 

During the ceremony, the SBP governor also talked about the economic crisis and inflation. He said that the destructive floods in 2022, Russia-Ukraine conflict, and other factors led to inflation in the Islamic Republic of Pakistan. 

Recently, the Ministry of Finance of the Islamic Republic of Pakistan also expressed concern over inflation.