Page 96 - CMA Journal (Mar-Apr 2025)

Ot her Fea t ure s
Other Features
O TH ER F EATURES
REGULATORY
REGUL A TORY

WATCH
W A TCH

esear
By ICMA Research and Publica ons Department t
y ICMA R
B
ch and Public
ons Departmen
a
SBP Cuts Policy Rate to 11% Amid
Improving Inflation and Economic Growth
The Monetary Policy Committee (MPC) of SBP reduced
the policy rate by 100 basis points to 11% on May 6, 2025,
following a sharp decline in inflation driven by lower
electricity prices and easing food costs. Economic growth
improved, with Q2 GDP rising to 1.7%, and the current
account recorded a $1.2 billion surplus, supported by SECP Alerts Companies on
record remittances. Despite these positive signs, the MPC
highlighted ongoing tax collection shortfalls and global Cybersecurity Risks
uncertainties, including trade tariffs, which present risks.
The Securities and Exchange Commission of Pakistan
The committee stressed maintaining a cautious monetary
(SECP) has warned companies about rising cybersecurity
policy stance given these mixed factors.
threats due to recent geopolitical tensions. It advised
firms to strengthen security by controlling access, fixing
SBP Releases Half Year Report FY25
network weaknesses, preparing for attacks, and
on The State of Pakistan’s Economy educating users. SECP urged companies to act quickly to
protect their data and systems, and stressed its
The State Bank of Pakistan’s Half-Year Report FY25 shows
commitment to safeguarding Pakistan’s financial and
clear improvements in the economy. Inflation dropped to
information networks.
a low of 0.7%, the current account recorded a surplus, and
the fiscal deficit was the smallest since FY05. These SECP Launches Desk to Fast-Track
positive results came from tight monetary policy, fiscal
discipline, low global commodity prices, and support Section 42 Licensing
from the IMF’s Extended Fund Facility. Despite challenges
The SECP has introduced a dedicated help desk and a
in agriculture and industry, strong exports and workers’
single email (section42.licensing@secp.gov.pk) to
remittances helped the economy. Inflation is expected to
simplify and speed up license applications for Section 42
stay between 5.5–7.5%, and GDP growth is forecasted at
companies. Medium and large Section 42 companies
2.5–3.5%. However, risks like global trade issues, rising
must now have at least one female director on their
energy prices, and domestic fiscal challenges remain. For boards from the next election to promote gender
details: https://www.sbp.org.pk/reports/half/arFY25/Half-index-eng-25.htm
diversity. Guidance and checklists are available on the
SBP Reports Strong Financial Sector SECP website to assist applicants. These steps aim to
make the licensing process easier and support
Resilience in 2024 not-for-profit organizations.
The State Bank of Pakistan’s 2024 Financial Stability
Review highlights steady growth and resilience in the SECP Cuts Fees, Upgrades Electronic
financial sector, supported by easing inflation, fiscal Mortgage Register for Easier Access
consolidation, and stable exchange rates. Banking assets
The SECP has reduced the Electronic Mortgage Register
grew 15.8%, with lower non-performing loans and
(EMR) access fee from Rs15,000 to Rs3,000 and extended
improved capital adequacy. Islamic banking expanded,
access validity from 30 to 90 days. Access is now also open
while non-bank financial institutions showed mixed
to Registered Intermediaries to speed up mortgage
results. Digital payments also gained momentum.
searches and loan processing. New features include
Despite global uncertainties, the sector is expected to
clearer charge displays for merged companies, bank-wise
withstand future shocks, with SBP committed to
company indebtedness views, monthly alerts for unpaid
maintaining stability through ongoing reforms. The
invoices, and a prepayment option for financial
Financial Stability Review 2024 can be accessed at:
institutions. These reforms aim to boost transparency,
https://www.sbp.org.pk/FSR/2024/index.htm
efficiency, and digital access in financial sector.
94 ICMA’s Chartered Management Accountant, Mar-Apr 2025