Zafar Paracha applauds SBP’s updated framework for ECs

December 28, 2024 (MLN): Exchange Companies Association of Pakistan (ECAP) has extended its full support for the State Bank of Pakistan’s (SBP) newly updated framework for exchange companies.

In a press statement, Mr Zafar Paracha, Secretary General of ECAP said that this transformative framework aims to strengthen the operational capabilities of exchange companies, ensure customer security, and curb illegal trading activities in the grey market.

Mr Paracha further lauded the dedication of the SBP Governor and his team. 

The Governor’s relentless efforts and unwavering commitment to Pakistan’s economic prosperity are unparalleled. 

He has chosen to prioritize national interest over personal opportunities, dedicating himself to the country’s progress.

SBP Governor and his team’s dedication and efforts have already shown positive outcomes in key areas:

• Narrowed Rate Gap: The significant difference of Rs15 between open market and interbank rates has been successfully reduced, fostering stability in the exchange rate.
• Increased Remittances: The rise in remittances is a clear indication of growing trust and confidence in the formal financial channels.
• Controlled Inflation: Declining inflation rates have provided much-needed relief to the public and encouraged economic activity.
• Economic Resilience: With reduced interest rates and a booming stock market, the economy is gaining strength day by day.
• Improved Macroeconomic Indicators: The country has witnessed a significant reduction in the current account deficit, providing much-needed relief to foreign reserves.
• Exchange Rate Stability: The rupee’s value against foreign currencies has stabilized, fostering greater predictability for businesses and investors. There was a time when the USD rate in the grey market was 350, in the open market it was 335, and in the interbank market, it stood at 317. It seemed that the country was near to default. However, the timely and decisive actions of the SBP have successfully steered the economy away from such dire circumstances, restoring stability and preventing a financial crisis.
• Increased Financial Inclusion: Initiatives like the Roshan Digital Account and Asaan Mobile Account have empowered millions of individuals to access banking services, driving financial inclusion across underserved segments.

 Mr. Paracha remained committed to collaborating with the SBP team to ensure the successful implementation of the framework and its intended benefits for the country’s financial ecosystem.

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