The Governor, State Bank of Pakistan, Dr Ishrat Husain, has said that the Punjab Provincial Co-operative Bank Limited (PPCBL) is to be converted into Micro-finance Bank in the next six months.
Talking to newsmen at the ground-breaking ceremony of Expo Center Lahore here on Monday, the governor said that he has held a meeting with the Punjab Chief Minister on Monday to discuss the issues relating to turning the PPCBL into a Micro Finance Bank and he has agreed with him in this regard.
After attaining the status of micro finance bank, its administrative control will go to Punjab government from the co-operatives department and it will have its own board of directors on the pattern of the Bank of Punjab, he pointed out.
In reply to a question, Dr Ishrat Husain said that trade policy will be announced on 22nd of this month, however, he declined to disclose its details, adding, "it has yet to be presented before the federal cabinet for approval, therefor, commenting on it will not be appropriate at this stage."
To a question about WTO regime, he said Pakistan has signed the WTO agreement in 1995 and with its enforcement in 2005, the trade barriers will go and the competitiveness in the international market will grow.
To a question about the mortgage financing, he said banking sector world over is doing mortgage financing, adding its rate in Malaysia is 50 percent, in India 30 percent while in Pakistan mortgage financing, which is in its nascent stage, is only 0.1 percent of GDP growth rate. Answering a query about increase in inflation rate, he said it is due to raise in the price of wheat.
"The prices of wheat have jumped in the market, which has caused increase in food inflation,' he stated.