KARACHI: Governor, State Bank of Pakistan, Tariq Bajwa on Wednesday emphasized on strong coordination between SBP, and Federation of Pakistan Chambers of Commerce and Industry for the promotion of trade and industry in the country.
“FPCCI role for promoting trade and industry is commendable. SBP is also working for the same. There is need for strong coordination,” he said while speaking at an interactive session with the business community, here at the Federation House.
SBP Deputy Governor Jamil Ahmed, a team of other senior officers of State Bank, Presidents of commercial banks, the Managing Director of Pakistan Banking Council, FPCCI President Zubair F.Tufail, Vice Presidents Mirza Ishtiaq Baig, Irfan Sarwana and Al-Haj Dhani Bakhsh Memon, former vice presidents Mumtaz Ali Shaikh and Akbar Abdullah, Chairman FPCCI Standing on Banking and Finance Dr. Mirza Ikhtiar Baig were also present.
SBP Governor said that along with a team of top SBP officers he would visit other major chambers of the country including Quetta Chamber so that coordinated and practical policies could be made for high economic growth.
He said, there were three major challenges to the present government, which included poor law and order situation, energy crisis and availability of credit. Now, he added, these issues had been resolved to great extent.
“Availability of credit to private sector has shown quantum jump over last year,” he informed. On pointation by FPCCI leaders about the fast increase in the country’s imports bill against the declining exports, the Governor explained that there was 32 percent increase in the import of capital goods that was very good sign for the economic growth of the country.
He said that 5.3 percent economic growth was the highest in last decade. The government’s target was 6 percent. By prudent policies of the government and State Bank, the inflation rate was brought down to, below 5 percent.
“We are moving the right direction,” he remarked. To a question from media there, he assured that Pakistan’s economy was strong stable and resilient enough. President United States of America Donald Trump’s statement against Pakistan would not affect our economy, he said.
However, he said, it was imperative to the positive centiments in the economy must continue. He referred to the Vice President of World Bank’s recent observation that Pakistan was understating its economic growth, whereas India was overstating at least by one percent. This was not good for Pakistan as it put her at low profile of the international credit agencies and made less attractive for foreign investment.
SBP Governor affirmed that there was many challenges to our economy but these could be met through joint efforts of the government and private sector. Stability and growth were two pillars of an economy. We have identified the areas of growth. Before becoming industrial economy, we must be a services economy.
There was need to focus on small and medium enterprises (SMEs) which were facing many problems including less credit to these. It was only seven percent of the total credit given to different sectors of the economy. This should be at least 17 percent. He urged that FPCCI committee on SMEs should closely work with SBP team working for promotion of these.
Tariq Bajwa underlined the need for training to banks officials and also SMEs representatives on the documentation and financing matters.
He said that for the economic growth in the country, it was very much essential to strengthen agriculture through modernisation and re-organising. Ninety three percent of farming was in small units, he mentioned. “ Productivity in our country has become stagnant. It must be enhanced,” he said.
He regretted that inter-regional disparity was increasing in the country, which was a matter of concern. Balochistan was much behind in credit utilization that led to low economic activity there. For rectification of this situation, he said, SBP Governor along with his senior officers team was going to Quetta next day.
