State Bank for ac­cel­er­at­ing do­mes­tic in­vest­ment

The Pak Banker - - FRONT PAGE - Staff Reporter

Gov­er­nor, State Bank of Pak­istan, Ashraf Mah­mood Wathra on Mon­day said it is op­por­tune time to ac­cel­er­ate do­mes­tic in­vest­ment in the coun­try to take it to the next level of ro­bust high growth. In­vest­ment be made in new projects.

As a key note speaker at a me­dia briefing on the econ­omy of coun­try, SBP Gov­er­nor linked his as­ser­tion/the­ory to the his­tor­i­cally low in­ter­est rates, marked im­prove­ment in se­cu­rity con­di­tions and en­ergy sup­plies, and launch of CPEC-re­lated ini­tia­tives. A good num­ber of mem­bers of Pak­istan Stock Ex­change (PSX), in­vestors, bro­ker­age house rep­re­sen­ta­tives and banks' pres­i­dents/CEOs. Ear­lier, the Gov­er­nor per­formed the tra­di­tional gong cer­e­mony that sym­bol­ises open­ing of trad­ing at PSX.

SBP Gov­er­nor, cit­ing a re­cent anal­y­sis of non-fi­nan­cial com­pa­nies listed at the stock ex­change, re­vealed that over­all the cor­po­rate sec­tor is fairly liq­uid and pos­sesses a healthy sur­plus of in­vestable funds.

He said Pak­istan's econ­omy had shown re­mark­able re­cov­ery dur­ing the last two fis­cal years, grow­ing by over 4 per­cent, af­ter low rate of 2.8 per­cent on av­er­age in the pre­ced­ing five years.

The macro-eco­nomic sta­bil­ity had been the key fea­ture of this re­cov­ery with bud­get deficits be­ing con­tained with­out com­pro­mis­ing on in­dis­pens­able pub­lic spend­ing. The ad­e­quate level of for­eign ex­change buf­fers built up cross­ing dol­lars 20 bil­lion for the first time, and in­fla­tion and in­fla­tion­ary ex­pec­ta­tions less likely to resurge any­time soon, he said. " What this tells us, is that no ma­jor risks are in sight, which would un­der­mine ef­forts in meet­ing our shared ob­jec­tive of achiev­ing high growth, gen­er­at­ing more jobs and move fur­ther ahead on the de­vel­op­ment fron­tier," the Gov­er­nor said. He termed the ma­tur­ing of cap­i­tal mar­kets as a wel­come sign for the pri­vate sec­tor.

Show­ing his op­ti­mism, the Gov­er­nor said that with the ad­vent of uni­fied PSX, now there was a deep liq­uid­ity pool and na­tional plat­form for do­mes­tic savers and in­vestors to take ad­van­tage of. For their part, cor­po­rate en­ti­ties could ben­e­fit from en­hanced ac­cess to sav­ings, which can be chan­neled into new projects and de­vel­op­men­tal ac­tiv­i­ties.

In ad­di­tion, he said, the in­te­gra­tion fa­cil­i­tates reg­u­la­tors in mon­i­tor­ing of mar­ket ac­tiv­ity, and al­lows a greater de­gree of ef­fi­ciency and trans­parency to be re­al­ized. State Bank of Pak­istan's Chief Eco­nomic Ad­viser Dr. Saeed Ahmed in his pre­sen­ta­tion ti­tled "Tak­ing Eco­nomic Re­cov­ery to the Next Level: Role of the Pri­vate Sec­tor" gave a de­tailed ac­count of in­ter­na­tional per­spec­tive on the role of pri­vate sec­tor and where the econ­omy stood th­ese days. He high­lighted that it was right time to move from sta­bi­liza­tion to growth and that it was the time for the pri­vate sec­tor to lead eco­nomic re­cov­ery. Ac­cord­ing to the pre­sen­ta­tion, non-fi­nan­cial cor­po­rate sec­tor data re­veal grad­ual de-lever­ag­ing since the year 2009, and marked im­prove­ment in liq­uid­ity con­di­tion.

The most con­ser­va­tive es­ti­mate of net sur­plus with the cor­po­rate sec­tor is Rs 446 bil­lion. Some en­ti­ties had parked their liq­uid­ity in trea­sury bills and Pak­istan in­vest­ment bonds.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.