The reforms in financial sector of the country are aimed at integrating it with world economy and international financial sector so that the country would be competitive in global economic scenario, Dr Salman Shah, Advisor to Prime Minister for Finance, said here on Monday.
While giving a broad spectrum of reforms in different sectors of the economy he said that due to the reforms, 80 percent of the banking sector, once dominated by public sector, "is now held by private management".
He was speaking at inaugural session of mutual fund seminar organised by the Institute of Cost & Management Accountants of Pakistan (ICMAP).
He said that inefficient private and financial sectors were big impediments to being competitive in global market, and added that real sector was the ultimate beneficiary of financial sector reforms.
Also, he said, the government wants to further strengthen the financial sector to invest more in real sector for further economic development of the country.
Finance Advisor maintained that along with the positive outcome of the financial sector reforms, the same taken in capital market also proved in robust performance of the capital markets. "The Karachi Stock Exchange (KSE) ranked the best performing market last year and, hopefully it would be going to attain the same height this time", he added. The capital market has huge potential, Shah said, and added that the government would take further initiatives like more listing of companies, and offering of IPOs to tap its potential.
On privatisation front, he said that after the successful transaction of KESC, which he called a difficult one, the government was encouraged to move towards other sector as government has nothing to do with the business. It is the private sector, which is the engine of growth anywhere.
While reforming the different sectors, he said, the government was also focusing on reforms in civil service to make the civil servants able to deal the de-regulated economy. "The plan to set up ''National School of Public Policy'' is also part of this reforms program in new economic scenario", he said.
Also, the restructuring of legal system of the country is to provide level playing field to investors and businessmen.
"So, when you look at the overall health of the national economy," he said, "the signs are very positive that country''s economic growth is second to none in the world".
Earlier, the Chairman of Mutual Funds Association of Pakistan (MUFAP) gave a presentation on mutual funds industry in Pakistan.
Former President ICMAP Sher Afghan Malik, Sadiq Hussain, Chief Investment Officer AKD Investment Management and Chairman Karachi Branch Council of ICMAP Javed Mansha also spoke.