Need stressed to raise domestic savings

KARACHI: There is a need to raise the domestic savings rate to address most of the macroeconomic imbalances including current and fiscal deficits in Pakistan, Peoples Bank of China former governor Zhou Xiaochuan said.

Zhou, in the 23rd Zahid Husain Memorial Lecture, at the State Bank of Pakistan said regional currencies should be used in order to facilitate trade in the region. He delivered the lecture on “Lessons from the Role of Peoples Bank of China in China’s Economic Rise”. In his lecture, he said, “Reforms in Peoples Bank of China reflect China’s gradualist approach towards globalisation for sustainable economic development.”

He emphasised on gradual liberalisation of exchange rate, monetary and capital account regimes to facilitate greater role for market forces without large-scale disturbances. He also elaborated how Peoples Bank of China provided incentive structures to channelize financial resources towards productive sectors to ensure inclusive growth and financial stability.

Earlier, while delivering his welcome address, SBP Governor Tariq Bajwa emphasised the role of central banks in provision environment conducive for sustainable development. Former Justice Nasir Aslam Zahid graced the occasion as chief guest.