$3bn SBA to bring economic stability: SBP governor
State Bank of Pakistan Governor Jameel Ahmed believes the $3 billion nine-month Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) will bring economic stability, help address inflation and boost dollar inflows. Talking to the state-run PTV News on Tuesday, Mr Ahmed expressed his satisfaction with the new agreement and found it a catalyst for the increase in the remittances and export proceeds. He said inflation and foreign debt servicing were serious issues, adding that the IMF deal would change the sentiments of the market and other stakeholders of the economy. He was sure that economic stability will have a positive impact on foreign exchange reserves. He said the country timely met all foreign debt repayment obligations during FY23 and still has over $4 billion in SBP’s account. He said the term sovereign default was overplayed while there was no such situation. In reply to a question, the governor said only the market determines the exchange rate, adding that the central bank has a stated policy about the exchange rate mechanism and will continue to monitor the situation.