According to newly appointed State Bank Governor Tariq Bajwa, there is a need to establish strong coordination between the central bank and the business community for the promotion of trade and industry. The State Bank’s role in regulating the economy and maintaining financial stability is crucial as it is the guard of the national wealth. However, until now this vital institution is marred by monotonous practices and official rigmarole like other departments of the government. The disproportional devaluation of the Pakistani rupee under the duress of pressure groups has caused tremendous loss to the national economy. The Pakistani rupee has been allowed to melt against dollar and other major and minor currencies of the world for years. Once two Thai bahts were equal to one rupee but now one baht is equal to over three Pakistani rupees. On another note, Egypt went through various tumultuous situations and political chaos but never devaluated its currency. A stable currency is guarantee to stable economy. However, it is good omen that only the current finance minister has ensured stability of the Pakistani rupee, otherwise, the rupee had always been devaluated for short term gains, which ultimately brought long term losses to the economy.
Mr Bajwa as former head of the Federal Board of Revenue and Secretary of Finance Division is well aware of the economic situation and financial health of the country. His admission to the contribution of trade and industry in the economy shows he is serious in developing deep coordination between the State Bank and the business community. It is also commendable that he is visiting various chambers of commerce and industry across the country to coordinate with businessmen and develop practical policies for betterment of the economy. The government is facing various internal and external challenges, including poor security situation, energy crisis and threats from the United States and India. In a situation of chaos, it will be a big success to keep the financial and economic affairs in running mod.
The governor will have to encourage disbursement of easy loans to the local industry to enable it to produce export surplus. The trade deficit is increasing at a fast rate as imports of capital goods have increased. Pakistan has made good progress in small and medium enterprises but the credit goes to individual efforts. However, this sector needs government attention to improve its performance and that is what Mr Bajwa is going to do. Bravo.
