KARACHI, Oct 09 (APP): The Governor State Bank of Pakistan (SBP) Jameel Ahmad, reiterating the commitment to expand financial inclusion and reduce gender gap, on Thursday emphasized that achieving inclusive economic growth requires durable macroeconomic stability that uplifts communities and secures prosperity for all.
The difficult, yet necessary, policy and regulatory measures taken in recent years, have led to a period of macroeconomic stability that is evident from the significant improvement in macroeconomic indicators of the country, he stated while addressing the 9th Annual Microfinance Conference organized by the Pakistan Microfinance Network under the theme “Renaissance of Microfinance”.
Governor Ahmad noted that inflation has declined sharply and is projected to remain in the government’s target range of 5 to 7 percent over the medium term, though recent floods might cause some temporary upward pressure on prices.
He highlighted remarkable growth in the country’s Foreign Exchange reserves since February 2023 and strategic interbank purchases to shore up foreign exchange buffers and added that reserves built up via interbank purchases greatly helped the government in timely debt repayments which otherwise had needed to borrow significantly higher amounts at higher interest rates for the purpose.
He observed that SBP’s monetary policy and regulatory efforts have been complemented by sustained fiscal consolidation by the government, which has helped contain demand side pressures on inflation and the external account. Noting considerable improvement in the country’s debt dynamics over the past three years, Jameel Ahmed said that economic growth is on the path to recovery and expected to accelerate further in the current fiscal year.
Reflecting on two decades of progress, the Governor reaffirmed the central bank’s commitment to microfinance as a driver of inclusive growth and shared that SBP has made comprehensive revisions to the Prudential Regulations for Microfinance Banks, to bring a shift from a rules-based, to a principle-based approach.
These reforms included: removal of restrictions on microenterprise lending, allowing greater flexibility, introducing a dedicated Agriculture and Livestock loan category, enhanced loan limits up to Rs 5 million for agriculture, microenterprise, and housing loans, and Rs 500,000 for general loans.
SBP has launched a Climate Risk Fund under the World Bank funded Resilient and Accessible Microfinance Project aimed at supporting two million borrowers through liquidity facilities to mitigate the impact of climate shocks, he stated, adding that SBP with the support of Government of Pakistan has launched a Risk Coverage Scheme for Small Farmers and Underserved Areas that offers 10 percent first-loss coverage and operational incentives to expand lending in primarily underserved regions like Balochistan, Khyber-Pakhtunkhwa, Azad Jammu & Kashmir, and Gilgit Baltistan.
Reiterating SBP’s strategic vision under the National Financial Inclusion Strategy 2028, the Governor highlighted that the financial inclusion rose from 47% in 2018 to 67% in June 2025 while the gender gap in financial access narrowed from 47% to 30% over the same period.
He credited this to transformative digital initiatives such as Raast, Asaan Mobile Account, Roshan Digital Account, and the launch of Digital Banks, alongside the Banking on Equality Policy, which promotes women’s financial inclusion. Going forward, the Governor reiterated the headline targets of NFIS 2028, to expand financial inclusion in Pakistan to 75% and reduce the gender gap to 25% by 2028.
The Governor also urged microfinance institutions to make their risk management practices more efficient, while incorporating the wide range of alternative data sources and digital tools for credit scoring; enforce internal audits and conduct staff training to prevent fraud; and maintain adequate liquidity buffers.
He underscored that good corporate governance, transparent communication, and climate-risk mapping could foster long-term sustainability.