Islamabad: Pakistan’s financial landscape has seen a significant boost as the country’s foreign exchange reserves surged, securing a two-month import cover following the receipt of USD 1.03 billion from the International Monetary Fund (IMF). This funding, part of a larger USD 7 billion Extended Fund Facility agreement with the IMF, was confirmed on October 4, bolstering the economic stability and currency value of the nation.

According to Zameen.Com, the central bank successfully met the IMF’s stringent loan conditions to receive the funds on September 30, 2024. The infusion has elevated Pakistan’s liquid reserves to USD 10 billion, significantly stabilizing the rupee and improving dollar supply in the market. Governor Ahmed highlighted the positive trend in remittances from overseas workers and a decline in inflation, which has favorably impacted monetary policy. He expressed confidence in the government’s fiscal management, noting a reduction in bank borrowing and a proactive stance on repaying existing loans.

Governor Ahmed detailed plans for modernizing the banking sector, including a shift towards fully digital banking by 2025 aimed at enhancing financial inclusion. He announced an ambitious goal to expand SME financing from PKR 550 billion to PKR 1.1 trillion over the next five years. As digital banking gains traction, Ahmed acknowledged increased risks of online fraud, urging banks to bolster cybersecurity measures. He noted that branchless banking now serves 59 million customers, while mobile banking users have surged to 12 million, growing at a rate of 70% annually.

The Raast digital payments platform was also highlighted as a success, having processed PKR 19 trillion since its inception, with daily transactions now exceeding 2.5 million. Plans are underway to integrate the system with Middle Eastern software to facilitate low-cost remittances for expatriates, simplifying their ability to send money home efficiently.