SBP boosts reserves without new debt: Governor

August 15, 2025 (MLN):The State Bank of Pakistan (SBP) has successfully bolstered the country’s foreign exchange reserves without adding to its foreign debt, recorded a $2.1billion current account surplus, the first in 14 years and achieved record remittances of $38.3bn.

Inflation has dropped to a historic low of 3.2% in June 2025, while reserves have nearly tripled from $4.4bn at the end of FY23 to $14.5bn by the close of FY25.

Governor Jameel Ahmad, at a flag-hoisting ceremony in Karachi on August 14 to mark Pakistan’s 78th Independence Day, said the central bank’s monetary and policy measures had steered the economy from the challenge of 38% inflation in May 2023 to a period of stability and sustainable growth.

He noted that SBP responded to the improving inflation outlook by reducing the policy rate in seven gradual steps from 22% to 11% since June 2024 which aimed to keep inflation within the 5–7% target range while fostering broader economic and business opportunities.

The Governor also emphasized the importance of technological innovation in promoting financial inclusion. He shared that SBP had spun off Raast, Pakistan’s instant payment system, into a separate subsidiary to enhance its service offerings and boost the adoption of digital payments.

Additionally, the central bank has modernized its payment infrastructure to enable the public to transact and remit funds through state-of-the-art facilities.

In a move aimed at expanding financial access, especially for women, SBP has also introduced an improved account-opening framework that allows individuals to open accounts without visiting a bank branch.

The celebrations also had national song performances by students from Zindagi Trust School, that showed the spirit of independence. Governor Ahmad also inaugurated a special art collection by children from the Ida Rieu School for the Blind and Deaf at the Contemporary Art Gallery.

The exhibit, themed “Beauty of Pakistan”, showcased the creativity of young artists with special needs and portrayed SBP’s continued support for inclusive cultural expression.

Other Independence Day exhibitions included “Echoes of Freedom through Archival Lens” and “Wings of Pakistan”, adding cultural depth to the economic achievements shared during the event.

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