SBP Governor Highlights Economic Stability and Launches Women’s Financial Initiative

In a significant development, the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, announced that inflation in the fiscal year 2025 has reached its lowest level in nine years. Speaking at the launch of the Women Entrepreneur Finance Code (WeFinance Code), he attributed this achievement to stringent monetary and fiscal policies that have brought economic stability to the country and helped overcome recessionary pressures.

Economic Stability Through Strategic Policies

During his address, Jameel Ahmad emphasized the positive impact of the government’s economic measures. He noted that improvements in external accounts have contributed to stabilizing the foreign exchange market, with remittances and exports leading to a current account surplus. “The State Bank’s foreign exchange reserves have now surpassed 14 billion dollars,” Ahmad stated, underscoring the significance of these developments in strengthening Pakistan’s economic footing.

The governor also highlighted the collaboration between financial and monetary policies, which have collectively fostered economic recovery and sustainable growth. He remarked, “The financial policy has effectively supported the monetary policy, resulting in economic recovery and sustainable growth in Pakistan.” Ahmad expressed optimism about the increasing economic activity and private sector growth, which he believes will enhance competitiveness and quality across various sectors.

Acknowledging Support and Reflecting on Challenges

Acknowledging the support of the Asian Development Bank for the WeFinance Code initiative, Jameel Ahmad emphasized the importance of macroeconomic stability in achieving a sustainable economy. Reflecting on the challenges Pakistan’s economy has faced, he credited tough decisions made by the government and the State Bank for spearheading the recovery efforts. “We must avoid repeating past mistakes and seize this opportunity to move towards a sustainable economic future,” he noted, urging continued vigilance and strategic planning.

Promoting Women’s Financial Inclusion

As part of the event, the SBP launched the inaugural WeFinance Code, a key initiative aimed at promoting financial inclusion for women in Pakistan. The launch was attended by SBP Governor Jameel Ahmad, Deputy Governor Saleem Ullah, and representatives from the Asian Development Bank. The WeFinance Code seeks to address the gender disparity in financial access and empower women entrepreneurs across the country.

Deputy Governor Saleem Ullah outlined the SBP’s commitment to increasing women’s financial participation under the Financial Inclusion Strategy. He revealed ambitious targets to boost women’s financial inclusion to 25 percent by 2028. Ullah highlighted the progress made so far, with overall financial inclusion in Pakistan rising from 16 percent to 67 percent, but noted that women’s financial inclusion remains disproportionately low.

Addressing Barriers to Women’s Financial Access

Saleem Ullah shared concerning statistics, revealing that 52 percent of women in Pakistan still do not have bank accounts, and only 2 percent are currently availing themselves of loans from banks. These figures underscore the need for targeted initiatives like the WeFinance Code to bridge the gap and provide women with equitable access to financial services.

To support this effort, 20 banks have already agreed to sign the WeFinance Code, demonstrating a collective commitment to enhancing women’s access to banking and financial resources. This initiative is expected to play a pivotal role in empowering women entrepreneurs, fostering economic growth, and contributing to broader social and economic development in Pakistan.

The launch of the WeFinance Code marks a significant step forward in addressing gender disparities in the financial sector and is poised to have a transformative impact on women’s economic participation. As Pakistan continues to build on its recent economic successes, initiatives like these are crucial in ensuring inclusive growth and sustainable development for all segments of society.