Governor SBP stresses on bringing poor in banking system

June 15, 2015 Off By Web Desk

KARACHI: Governor State Bank of Pakistan (SBP) Ashraf Mahmood Wathra on Tuesday said over 50 percent of population in Pakistan had no inclusion in financial system of the country. SBP was striving to bring them in banking system network for their economic growth.

“SBP has been inclusively involved in educating farmers and other many people from different sectors to improve countrywide financial gains,” he said while addressing on the second and final day of the training workshop for journalists organized by SBP entitled ‘Understanding Macroeconomics, Financial Sector & Banking’ at SBP Learning Resource Centre.

Large number of journalists representing print and electronic media attended the workshop. The objective of this workshop was to familiarize the journalists with the key concepts of macroeconomics and functions of SBP such as monetary policy, banking supervision and regulation, and overseeing of financial markets. Governor SBP said that such workshops would be held thrice a year to promote true sense of financial reporting as it was a sensitive issue which required clear vision.

“In our quest for achieving our goals and roadmap to move forward, media support is critical. It can bring change in society. Joint efforts of SBP and media will help bring poor people in banking financial system,” he said.

He underlined the need for an inclusive growth in the country at an accelerated pace, and said that all segments of the economy must contribute towards this goal. “Lack of general public’s understanding of prevalent Islamic banking paradigm is one of the major impediments to sustainable growth of the industry,” he added.

The governor said that SBP had successfully piloted a Nationwide Financial Literacy Program (NFLP) to improve the financial well-being of low income strata through enhanced flow of financial education. Now it was contemplating NFLP. However, he conceded that such efforts needed to be complemented with information and guidance from opinion leaders who have an influence on mass behaviour.

The governor hoped that journalists would be better equipped to report on macroeconomics, financial sector and banking after this workshop and use this new found knowledge to serve the larger cause of financial inclusion. He also responded to the questions of journalists.

In his inaugural address Deputy Governor (Policy) Riaz Riazuddin said that the State Bank of Pakistan had been organizing this workshop from time to time. “We consider your participation in this workshop a privilege to SBP as you all share a common objective with us,” he said.

Riazuddin said that one of the main objectives of the SBP was to keep monetary and financial stability in the country with a view towards fuller utilization of national resources. “This foremost objective of SBP required us to understand its economics and finance first, and then devise policies to regulate and steer it to continuously try achieving this objective,” he said adding, “We also want to inform the people of Pakistan and the world about the economic and financial conditions and their nexus with SBP policies and we achieve this objective in partnership with you.”

Director Communication and Outreach IMC Worldwide Naseem-ur-Rehman said that financial reporting must be based on facts despite sensational reporting that is gaining currency in media these days. He appreciated the SBP efforts of holding workshop aimed at capacity building of the journalists.

Chief Spokesman State Bank of Pakistan Abid Qamar said that SBP was carrying out all possible measures to improve financial reporting in the country and holding of this workshop was an effort in this direction.

He said hopefully journalists would better familiarize themselves with the key concepts of macroeconomics such as monetary policy, banking supervision and regulation which will ultimately help improve their reporting.

Various topics pertaining to the SBP were covered during the two-day workshop. Abid Qamar spoke on Monetary Policy while Additional Director Mahmood-ul-Hasan made a presentation on Real and the Fiscal Sectors, whereas, Senior Joint Director Asma Khalid spoke on External Sector. Additional Director Muhammad Javaid Ismael made a presentation on Banking Regulation, Supervision and Payment Systems. Additional Director Qazi Shoaib Ahmed spoke on Development Finance and Financial Inclusion, whereas, Additional Director Muhammad Amin Khan Lodhi discussed Financial Markets.