State Bank Mandates Banks to Embrace Digital Supply Chain Finance Solutions

The State Bank has instructed banks to establish dedicated supply chain finance departments.

Karachi: The State Bank of Pakistan has directed commercial banks to develop and implement digital supply chain finance (SCF) solutions within the next six months. This initiative aims to enhance financial access for small and medium enterprises (SMEs) and leverage technology for the digitization of retail payments.

The State Bank has instructed banks to establish dedicated supply chain finance departments. These departments will be tasked with developing digital SCF products specifically designed for SMEs. Banks are also encouraged to collaborate with fintech firms or service providers to deliver tailored digital SCF solutions.

The State Bank highlighted that adopting digital SCF solutions will significantly increase SMEs’ access to finance. Additionally, SMEs will benefit from improved operational efficiency, reduced costs, and strengthened risk management practices through these digital initiatives.

This directive marks a significant step towards modernizing the financial landscape and supporting the growth and sustainability of SMEs in Pakistan.

National Economic Council Approves Historic Development Budget

The National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, has approved the largest national development budget in Pakistan’s history.

The meeting, held today in Islamabad, sanctioned a colossal development budget of 15 trillion rupees. Of this, 1.4 trillion rupees will be allocated federally, while 100 billion rupees will be channeled through public-private partnerships.

During the session, the annual plan for the fiscal year 2023-24 was reviewed, and the annual plan for 2024-25 was approved following a thorough evaluation of the five-year strategic plan. Sources indicate that the economic growth target for the next fiscal year is set at 3.6 percent, with an ambitious goal of 6 percent growth by 2029 under the five-year plan. The average economic growth target for the next five years is pegged at 5.1 percent.

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The approved budget sets a 2 percent growth target for agriculture in the upcoming fiscal year. Additionally, it aims for 4.4 percent industrial growth, 4.1 percent growth in the service sector, and exports reaching 40.5 billion dollars.

According to sources, the import target for the next financial year is 68.1 billion dollars, with remittances from overseas Pakistanis expected to total 30.2 billion dollars. The current account deficit target has been set at 3.7 percent for the next fiscal year.

The meeting also reviewed public investment for the fiscal year 2024-25, assessed the progress of the Executive Committee of the National Economic Council (ECNIC), and evaluated the Central Development Working Party’s (CDWP) report. The agenda was unanimously approved by representatives from all provinces.