Karachi: Governor State Bank Jamil Ahmed has said that the measures to bring inflation down from 11.8 to 3.2 percent were successful.
The State Bank organized a flag hoisting ceremony on the occasion of Pakistan’s 79th Independence Day, in which Governor Jamil Ahmed hoisted the national flag. In his keynote address on the occasion, he said that the State Bank is striving to ensure monetary and fiscal stability for the long-term prosperity of the country. In the recent past, we have faced unprecedented economic challenges and we are now moving towards economic stability and sustainable growth.
The Governor State Bank recalled that inflation had reached 38 percent in May 2023. In response, the State Bank took a series of measures to control inflation. These efforts were successful and inflation fell to 11.8 percent by May 2024 and in June 2025, it fell to a historically low level of 3.2 percent.
He said that the State Bank of Pakistan (SBP) has started reducing the policy rate in 7 phases from June 2024 to improve the inflation scenario and brought it down from 22 percent to 11 percent. The focus of our monetary policy is to maintain the hard-earned price stability while keeping inflation within 5 to 7 percent. This will help in harnessing broader economic and business opportunities.
The Governor of the State Bank mentioned the improvement in the external sector and said that Pakistan’s foreign exchange reserves have almost tripled, from just $4.4 billion at the end of FY23 to $14.5 billion at the end of FY25.
He said that the current account surplus of $2.1 billion, which is the first in 14 years, and the record $38.3 billion in remittances from overseas Pakistanis played a significant role in this improvement.
Governor Jamil Ahmed further said that the State Bank has tried to increase foreign exchange reserves to increase economic resilience to external shocks. This increase in reserves has been achieved without any increase in foreign debt. International credit rating agencies have also upgraded Pakistan’s rating in recognition of recent steps, which will increase foreign investment opportunities.
Stressing the importance of technological innovation in financial inclusion, the Governor mentioned the initiatives of the State Bank in the digital sector, including the creation of Pakistan’s instant payment system ‘Raast’ as a separate subsidiary to expand the scope of services to adopt digital payment methods.
He said that in addition, the State Bank has taken several steps to modernize the payment infrastructure so that the public can send and receive money through these facilities. He said that the State Bank has recently launched an improved account opening system through which an account can be opened without visiting a bank branch. This will benefit the public, especially women.
The Independence Day celebrations concluded with the rendition of the national anthem by the students of ‘Zindagi Trust School’. The Governor also inaugurated an exhibition of unique artworks by the hearing and visually impaired children of Ida Reo School at the Art Gallery.
The theme of the exhibition was ‘The Beauty of Pakistan’, which showcases the creativity and vision of young artists with special needs and also reflects the State Bank of Pakistan’s continued support for inclusive cultural expression. Other exhibitions on Independence Day included ‘Echoes of Freedom through Archival Lens’ and ‘Pakistan’s Shahpar’.