SBP governor says steps being taken to promote banking sector

KARACHI: The State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Thursday said that the administration is making efforts to promote bank sectors.

Dr Reza Baqir, while addressing a seminar regarding economic challenges, announced that the system is being converted to digitisation which is an easy and documented solution.

“The digitisation will allow consumers to make payments through their mobile phones. It is in our future plan to give facilities on money deposited in savings’ accounts and national saving. I appeal nationals to show patience as our revenue is gradually increasing besides witnessing a reduction in current account deficit.”

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Baqir said that the Gross Domestic Product (GDP) rate had hike due to increase in consumption value in past. He said that China raised its growth rate by increasing its capital. The volume of the country’s exports is increased and it is the task of the private sector to raise it, he added.

The central bank governor said that the people are facing difficulties due to the existence of illegal means to transfer money. Baqir admitted that the central bank has received complaints regarding the additional receivings in the exchange rate from different banks. He said that the step of such banks is completely unlawful and the authorities are looking into it on a serious note.

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Baqir reiterated that tough decisions are needed for handling the economic situation when foreign reserves are consistently dropping.

He was of the view that the increase in exports is meant to raise the production and employment rate of the country. The governor said that the steps helped an expansion in local manufacturing sectors of furniture, shoes and other products. He added that the prices of consumers’ products are decreasing when the rates of imported items are hiked.

He praised the decisions made by the chairman of the Federal Board of Revenue (FBR), Shabbar Zaidi, which visibly increased revenue collection. The governor urged nationals to spot non-filers as the tax rate will be reduced after the increase in the number of taxpayers.