The State Bank of Pakistan (SBP) Governor, Jameel Ahmed, has hinted at a possible reduction in the monetary policy rate, citing a decline in the inflation rate that is positively influencing the decisions of the monetary policy committee.

Speaking at a media briefing in Karachi, Governor Jameel Ahmed highlighted the government’s improved financial standing, which has reduced the urgency for banks to repay loans early and eased pressure on public borrowing.

In a significant development, the central bank has licensed five digital banks, with full digital banking services expected to launch by 2025. One of these banks is set to begin operations within the next three months. This initiative is part of the SBP’s broader strategy to enhance the financial ecosystem, including a substantial expansion in SME financing, projected to grow from Rs. 550 billion to Rs. 1.1 trillion over the next five years.

Governor Ahmed also reported that Pakistan’s foreign exchange reserves have climbed to $10 billion following a $1 billion tranche from the International Monetary Fund, providing sufficient coverage for two months of imports. He assured that the supply of dollars remains stable, with no pressure on the rupee in the forex market.

However, the governor expressed concern over the rise in online fraud within banking systems. In response, the SBP has issued warnings to banks, urging them to strengthen their cybersecurity measures to protect against such threats.