FAISALABAD: Economic indicators have become positive and with mobilisation of national resources more relief will be provided to the private sector so that it could catalyse national economy, said Governor State Bank of Pakistan (SBP) Dr Reza Baqir.
Addressing the Faisalabad Chamber of Commerce and Industry (FCCI) here on Thursday, he enumerated various steps taken to transform the economic deficit into surplus and said that during first six months of current fiscal year, exchange rate had been switched over from fixed to the market driven regime. He said that imports had been reduced while exports had recorded a modest increase and the SBP was optimistic that with the confidence of private sector more facilities would be doled out to this sector.
He compared Pakistan with Egypt and said that in Egypt exchange rate was increased 125 per cent within only 24 hours, but in Pakistan only 55 per cent increase was recorded during the last 18 months. He was optimistic that inflation would start decreasing in the next few months.
Comparing savings with inflation rate, the governor said that people preferred to invest the savings in real estate. However, he was making efforts to bring these investments through banking channels. He disclosed that 20-30 per cent more revenue had been collected and as the situation would ease down more facilities would be announced for the exporters. He said that there were only few countries, including Sudan, Ethiopia, Yemen and Afghanistan, whose export to GDP ratio was less than 10 per cent. He said that our exports had huge potential and we could double it as compared to our GDP.
He mentioned various schemes for the export sector, including long term finance (LTF) which was offering only 3pc interest rate for exporters. He said that the SBP intended to diversify exports which henceforth remained textile centric.
He mentioned various schemes for woman entrepreneurs and said that for the scheme, the SBP would provide capital at zero per cent interest to commercial banks. Earlier, the forms for loan applications were consisted of 7-8 pages, which had now been reduced to only one-and-a-half page, he added.
Responding to various questions and queries, Dr Baqir said that LTF had Rs.25 billion cushion. Similarly for EFF schemes, cushion of Rs 25 billion was also available up till December 31. However, the SBP would further increase the limit for the remaining fiscal year. He also pointed out that knowledge management system would be launched during the next month. “It will be an online facility and applicants could know the status of their loan applications by entering their transaction code”, he added. FCCI president Rana Sikandar-e-Azam and others also spoke on the occasion.