SBP to achieve 5 percent growth rate in FY15

State Bank of Pakistan Deputy Governor Saeed Ahmad is optimistic about the growth rate, claiming that it will achieve a five percent rate during the current fiscal year (2014-15) despite challenges, such as the political and economic instability. He told journalists on Tuesday during the opening ceremony of the Third Global Forum on Islamic Finance organized by the Centre of Islamic Finance COMSAT Institute of Technology Lahore campus that the economic indicators "are in positive direction".
He said the International Monetary Fund, the World Bank and the Asian Development Bank had agreed that Pakistan's economy was moving in the right direction. Last year, he said Pakistan achieved a 4.8 percent growth rate and during the current financial year it will be 5 percent. "Without managing the fiscal balance borrowing will be increase we have to bring balance in our spending and income. If the borrowing of the government from banks will be less then they will lend money to the private sector. There is a need of betterment in our tax system," he added.
He said the volume of Islamic banking reached 11 percent in Pakistan and by 2020 it was expected that this volume would double. He said upto 30 to 40 percent of people never used the conventional banking system because it was based on interest. He called for creating awareness among the people about the Islamic banking system. Answering a question regarding circulation of fake currency notes, he said many banks failed to report to the State Bank about the problem of fake currency notes. "If banks don't report about the fake currency note how the SBP will take action against them."
He said people never reported the police about fake currency notes because of our faulty system and there was a need to change the procedure of lodging a complaint in police. He earlier told the forum that the State Bank was trying to implement the Islamic banking in true sense. He said poverty alleviation should be important element of the Islamic banking. He said that 'we need innovative solutions of the problems faced by the Islamic banking industry'.
He said that Islamic banks should invest in the agriculture sector which is the back bone of our economy. He appreciated COMSAT for establishing the Center of Islamic Banking. Rector of COMSTA Institute of Technology Dr S M Junaid Zaidi, Director of COMSTAS Lahore Campus Dr Mahmood Bodla and Head of the World Bank Global Center for Islamic Banking Dr Zameer Iqbal were also expressed their views on the occasion.