KARACHI: State Bank Governor Jameel Ahmad on Friday revealed that the designs of new currency notes have been finalised and forwarded to the federal cabinet for approval.
The SBP governor disclosed this while responding to a question about the delay in the introduction of new currency notes during his meeting with members of the Karachi Chamber of Commerce and Industry (KCCI) on Friday.
In January 2024, the SBP had invited the general public to submit designs for new currency notes as it initiated the process of replacing the existing banknotes. According to the central bank, the new notes would have advanced security features and address the issue of counterfeit notes. The SBP had said that it was an “established practice” to introduce new banknotes every 15 to 20 years for security purposes.
At the KCCI meeting, Jameel Ahmad clarified that exchange company rates are fully determined by market forces, and the State Bank has no direct role in setting exchange rates. He said progress was underway on the licensing and regulatory framework for virtual assets in Pakistan.
Warning of temporary inflationary pressures, Mr Ahmad said inflation could exceed seven per cent in the last quarter of FY26, but the State Bank remained committed to keeping inflation within the medium-term target range of 5-7pc.
According to a KCCI press release, the SBP governor said the country’s current account remained in surplus during the first nine months of FY26, and the overall deficit was expected to remain between zero and one per cent. The external account was now in a much stronger and healthier position, he added.
He acknowledged that global uncertainties and oil price fluctuations could impact growth in the final quarter of FY26. He said SBP reforms, along with strict action against hundi and hawala, had played a key role in stabilising the economy and strengthening foreign exchange reserves. He said remittances, which stood at $38bn last fiscal year, were expected to exceed an unprecedented $41bn this fiscal year.
In reply a question about the alleged “Pinky Cocaine Queen” case and whether the banking system has mechanisms to detect suspicious financial transactions, the SBP governor said banks and financial institutions are required to monitor suspicious transactions under strict regulatory frameworks.
He added that any unusual or suspicious activity identified through the banking system is referred to relevant law enforcement and investigating agencies for further action in accordance with the law.
On the SBP’s renewed focus on small and medium enterprises, he said regulations had been simplified, procedural hurdles reduced, and banks directed to prepare dedicated SME growth plans. He said SME financing had surged from Rs491bn in June 2024 to Rs882bn by December 2025, with a target of Rs1.5 trillion by June 2028.
Mr Ahmad said that global economic conditions and declining commodity prices had adversely affected export performance. Exports are estimated at around $30bn this year compared to $32bn last year, though the government is actively working on measures to reverse the trend, with positive results expected within the next two months, he added.
Businessmen Group Chairman Zubair Motiwala, referring to the prevailing geopolitical situation, urged overseas Pakistanis to continue supporting the national economy during the ongoing Middle East conflict and help ease external account pressures in the current fiscal year.
KCCI President Rehan Hanif said valuation issues were creating serious difficulties for the business community, as commercial banks, rather than Customs authorities, were effectively determining valuation benchmarks in many cases. He urged the SBP to withdraw valuation-related powers from commercial banks to facilitate smoother trade operations.
