Dr Ishrat Husain, Governor, State Bank of Pakistan (SBP), on Wednesday said that consistent growth rate above 6 percent would help lower the poverty in the country gradually.
Addressing the students and faculty of Sindh Madressatul Islam (SMI), the alma mater of Father of the nation, Quaid-e-Azam Mohammad Ali Jinnah, here on the subject "The State of Pakistan economy," the Governor said that the present alarming levels of poverty were the result of gradual increase in poverty that started piling up since 1989. However, we have arrested the trend but the improvement would only possible if more than 6 percent growth rate is achieved for a longer period, he opined.
He said that four years ago, when Pakistan was roaming around to beg some financial aid from the international donors, there was no one ready to talk to it. And now when we proved our economic sovereignty and said "good bye" to IMP facility, everyone is coming to us, offering various packages on our terms, he asserted.
From October 1999 position Pakistan was on the verge of economic collapse and defaulting of international loans, much debated option was seriously considered by the economists of the country, with $38 billion piled up debt and were utilising 66 percent of our resources in debt-servicing we opted for a tough but right course.
The decision, though caused hardships but steer the country out of debt trap and put the economy on the road of recovery, he added.
He said that now the debt has fallen to 34 billion dollars and Pakistan is spending merely 31 percent of its resources on debt service, less than what it was spending four years ago.
Substantiating his plea, he said that if the government starts creating jobs in public sector entities, it would bring money to few thousand people but would not help arrest the increasing poverty as more of the resources of the government would be going to meet the deficit of such public sector entities, as was the case in the past.
Government was funding Rs 100 billion per annum to bridge deficit of public sector entities like Pakistan Steel, Wapda, KESC, etc.
He said that Rs 100 million which used to be funded to public sector entities to bridge their deficit, could have been diverted to education, health cover, make farm to market roads and help the womenfolk to get education.
Half of the population has been deprived of employment opportunities, which would have helped in decreasing child mortality rate through better nutrition, sanitation, and education of next generation.
The chain process of girls' education can help check the poverty in the society, he added.
He said the present government raised the price of wheat and cotton so that the purchasing power of the rural people could be increased and development expenditures increased from Rs 100 billion to Rs 160 billion last year and would further be upped to Rs 200 billion this year.
This process would help curtail the poverty but no government has magic wand to bring results overnight. It will take time, he added.
He called upon the students to acquire new skills and excel in their fields. That's the way when the employment would be following them instead of they be running after the employment opportunities.
He said after doing his Masters in Chemistry from America, his parents made him appear in CSS and he joined the civil service but he would not ask his children to do so. One should follow the market requirements.
He maintained that he had seen people of 50 years of age, studying in the evening classes to acquire new skills and knowledge as they considered that they have become redundant.
"I am not against studies of languages, social sciences, etc they are also needed in the society but one should be looking for the market demand," he remarked.
Earlier, Mohammad Ali Sheikh, Principal of the Madressa, presented the address of welcome and briefed the Governor SBP about the institution and its future plans.
He also presented Madressa memento and Ajrak to the him.
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