KARACHI: The State Bank of Pakistan (SBP) has granted a digital banking license to Easy Paisa Bank Ltd, the central bank governor announced on Tuesday. This move aims to enhance financial inclusion, particularly in remote areas of the country.
Speaking on the occasion, SBP Governor Jameel Ahmad emphasized the significance of digital and branchless banking. He highlighted that nearly half of Pakistan’s population in far-flung areas still lacks access to formal banking services.
“The introduction of digital banks is vital to address this gap,” the governor stated. He added that digital banking has the potential to empower small and medium enterprises (SMEs), further boosting economic growth.
Monetary Policy Rate Reduced
In a separate announcement, the SBP slashed the policy rate by 100 basis points, bringing it down to 12 percent. This is the first monetary policy adjustment of 2025, effective from December 17, 2024.
The Monetary Policy Committee (MPC) meeting, chaired by Governor Jameel Ahmad, made the decision after evaluating the country’s economic indicators.
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Inflation Gradually Decreasing
Governor Jameel Ahmad noted that inflation in Pakistan has been steadily declining. He revealed that the inflation rate dropped to 4.1 percent in December 2024.
The central bank expects inflation to remain between 5 to 7 percent during the fiscal year 2024-25. “This reduction in inflation reflects the effectiveness of our monetary policies,” the SBP chief said.
Economic Outlook Brightens
The issuance of digital banking licenses and a reduction in the policy rate are seen as positive steps towards economic stability. The SBP’s initiatives aim to foster financial inclusion and encourage growth in key sectors such as SMEs.
With inflation under control and regulatory reforms underway, Pakistan’s economic prospects for 2025 appear optimistic.
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