Tag: Financial Inclusion

  • Banks in Pakistan to issue more loans this year to support agriculture, SMEs

    Banks in Pakistan to issue more loans this year to support agriculture, SMEs

    The State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed that banks will significantly increase loan issuance this year to support the agriculture and small and medium-sized enterprise (SME) sectors.

    The Governor’s address highlighted substantial improvements in Pakistan’s macroeconomic conditions. Ahmad reported a major decrease in inflation, which fell to 11.1 per cent in July 2024, down from 28.3 per cent in July 2023.

    He also pointed out a remarkable reduction in the current account deficit, which had been $17.48 billion in fiscal year 2022 but dropped to $3.2 billion in fiscal year 2023 and further to $0.68 billion in fiscal year 2024.

    Foreign remittances have risen to $30.25 billion in fiscal year 2024, an increase from $27.33 billion the previous year. Meanwhile, foreign reserves have improved to $9.3 billion despite ongoing debt repayments.

    Governor Ahmad noted that there are no restrictions on imports and highlighted a significant rise in IT exports, both of which are positive signs for the economy.

    These improvements, according to the Governor, are the result of effective policies by both the government and the SBP. He outlined several initiatives designed to enhance financial inclusion, including the National Financial Inclusion Strategy, the National Financial Literacy Program, and Banking on Equality.

    He also praised ‘Raast,’ Pakistan’s new instant payment system that allows for quick digital transactions between individuals, businesses, and government entities. Additionally, the Asaan Mobile Account service enables people, particularly those from low-income backgrounds, to open digital branchless banking accounts.

    The SBP has made efforts to inform the public about these digital financial services through its field offices and commercial banks, focusing on services such as Raast, QR Codes, Asaan Mobile Accounts, and Asaan Digital Accounts.

  • Are you a woman looking to start your own business? State Bank of Pakistan has an interest-free loan for you

    Are you a woman looking to start your own business? State Bank of Pakistan has an interest-free loan for you

    In pursuit of fostering both economic stability and enhanced female workforce participation, the State Bank of Pakistan (SBP) has initiated a noteworthy endeavor. It involves extending interest-free loans to unemployed women, empowering them to embark on substantial entrepreneurial ventures.

    During a seminar titled ‘Women Bankability and Banking on Equality’ at the Government Polytechnic Institute for Women in Dera Ismail Khan, Fazal Muqeem, Deputy Chief Manager of SBP in Dera Ismail Khan, articulated this pivotal announcement.

    Muqeem underscored that women, through the establishment of their own businesses, would not only be able to provide for their families but also confront the pervasive impact of the current inflationary trends that affect every echelon of society. He highlighted the financial difficulties faced by economically disadvantaged individuals in meeting their daily expenses due to limited income avenues.

    In light of the restricted employment opportunities within the country, the pursuit of self-employment emerges as the most viable option in such circumstances, according to Muqeem. He elucidated that these initiatives are the result of collaborative efforts between the Prime Minister and the central bank, aimed at cultivating productive citizenship among unemployed women.

    These policies have facilitated the opening of bank accounts for unemployed women on an equitable basis with men, thereby enabling them to access interest-free loans of up to Rs0.5 million.

    Muhammad Zubair, Assistant Director, asserted that the contemporary era is characterised by digital mobility, and citizens should harness this resource to their advantage. He encouraged citizens to become income tax filers, which would help them reduce their tax liabilities.

    Sara Khan, Principal of GPI for Women, expressed her gratitude to the SBP for their support and highlighted their institution’s dedication to equipping students with skills that empower them to be self-sufficient and valuable contributors to society.

    According to Geo News, she envisioned that numerous women would benefit from SBP’s policy in the future and hoped that such insightful seminars would continue to be organised, enabling the underprivileged and eligible women of Dera Ismail Khan to reap the benefits.

    The event also saw the presence of key figures such as Muhammad Amir Ejaz, Assistant Chief Manager of SBP in Dera Ismail Khan, Rizwanullah Shah, Zafar Awan, Placement Officer at GPI (Women), and a substantial gathering of teachers and female students.