'Role of Central Banks': 22nd Zahid Husain Memorial Lecture held

Professor Sir Paul Collier, Professor of Economics, Oxford University UK has said that national consensus on CPEC shows a powerful symbol of national unity.
While addressing the 22nd Zahid Husain Memorial Lecture on "The Role of A Central Bank in National Economic Development" organized by the State Bank of Pakistan (SBP) on Thursday Professor Sir Paul Collier said that there is need to create a shared narrative to induces mutual obligations on the part of the public to contribute towards economic development, besides introducing constraints on rulers at the same time. Central bank as a constitutionally independent institution can do a lot to create this shared narrative, he added.
Professor Collier, while discussing the capacity of state institutions to tax and to install checks and balances on the abuse of power, emphasized on the belief of a sense of shared belonging, a sense of fairness and a sense of purposive action. Without these complementary beliefs sustained economic development would be hard to achieve, he added.
He said that it is imperative to create a shared narrative and inculcate these beliefs among all the main stakeholders, if a country wants to walk the path of sustained economic development.
Referring to SBP, he mentioned that the recent emphasis of SBP on provision of financing underserved segments of the society such as to SMEs, low cost housing finance and agriculture are purposeful actions in this regard.
He also praised the national consensus by the people of Pakistan on CPEC as a powerful symbol of national unity. Professor Collier said that these actions accompanied by sacrifices of current generations will create trust between the government and the general public needed for achieving economic prosperity for future generations.
Earlier in his inaugural address the Governor State Bank of Pakistan Tariq Bajwa introduced the guest speaker and recounted his achievements in the field of economic research and policy making.
Governor Bajwa also highlighted the role of the SBP in the development of Pakistan's economy through strengthening financial institutions, developing human resources, providing credit to SMEs and other priority sectors and spearheading efforts for financial access to underserved segments of the society.
Justice Nasir Aslam Zahid (retd) son of (late) Zahid Husain - first Governor SBP, also graced the occasion as chief guest. The lecture was attended by former SBP Governors, SBP Board and MPC members, diplomats, vice chancellors, deans and students of various universities, presidents and CEOs of banks, and other bankers.