Pakistan’s forex reserves strengthen to 2-month import cover: SBP governor

The Governor of State Bank of Pakistan, Jameel Ahmad, announced that the country’s foreign exchange reserves have increased to a two-month import cover after receiving the first installment of the IMF’s $7 billion Extended Fund Facility. This has provided much-needed stability to Pakistan’s external position. The central bank chief highlighted improvements in the country’s fiscal situation, including a decrease in borrowing from banks and an increase in remittances. He also outlined plans to modernize the banking sector, focusing on digital banking and expanding financing for Small and Medium Enterprises. Governor Ahmad emphasized the importance of strengthening cybersecurity measures due to the growing popularity of digital banking and online fraud risks. He also highlighted the success of Raast, Pakistan’s digital payments platform, in facilitating low-cost remittances for overseas Pakistanis. Overall, the governor emphasized that innovation in banking is crucial for Pakistan’s economic development.