KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad announced on Wednesday that the designs for new currency notes have been finalized and will soon be presented to the federal cabinet for approval.
Speaking at a press conference after the Monetary Policy Committee (MPC) meeting, the SBP governor said the policy rate will remain unchanged at 11% for the next two months. He cited improving economic indicators and a lower-than-expected inflation rate as key reasons behind the decision.
He explained that Pakistan’s inflation for the last fiscal year stood at 4.5%, slightly below the targets set by both the government and SBP. He added that food prices had decreased significantly over the past year, and core inflation had also declined gradually.
“In June, core inflation dropped to 7.5%, while overall inflation fell to 3.2%,” he said. However, he noted that inflation had started to rise again over the past two months after hitting a low of 0.3% in April, and further fluctuations are expected in early next year.
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The governor also mentioned that while energy prices have remained somewhat stable, their long-term effects may not be favorable and will be visible next year. He said the MPC also reviewed the external account situation before deciding to maintain the interest rate.
On the subject of digital currency and cryptocurrency, Jameel Ahmad said the government has passed a law to regulate virtual assets. A Virtual Assets Regulatory Authority will be formed, and the central bank is planning to launch a pilot project for its own digital currency.
He added that the SBP is already working on digital currency initiatives.
The governor also reported a $8 billion increase in remittances during the fiscal year and said remittances could reach $40 billion next year. He projected GDP growth between 3.25% and 4.25%.
