From 8.4 percent at the beginning of 2005, headline inflation fell to 6.6 percent by year-end, due mainly to declining food prices, the easing of oil prices from record levels, as well as the appreciation of the peso against the US dollar. The country’s external position also strengthened in the past year.
State Bank of Pakistan (SBP) being the regulator of banking sector is aware of the significance of prudent and effective supervisory framework and remains committed to this end. Improving market development and regulatory regimes are continuous processes in the context of changing industry needs and overall macroeconomic environment; therefore, we regularly review and update our regulatory framework.