Underlining the importance of a well functioning financial sector for economic stability of the country, Prime Minister Syed Yousaf Raza Gilani has said that a strong banking system is an essential ingredient for a vibrant economy.
He, however, underscored the need for lowering of excessive government borrowing to reduce inflationary pressures. He was talking to Dr Shamshad Akhtar, Governor State Bank, who called on him here at the Prime Minister House on Tuesday.
While discussing the country's current fiscal and monetary situation, the Prime Minister emphasised upon the need to adopt practical measures to effectively control the inflation and prices of essential commodities besides ensuring sustainable economic development.
He said that controlling inflation and price-hike are our government's top priority so as to pass on the benefits of economic growth to the masses. The Prime Minister said that the banking sector has to cater to the need of low-income people, small and medium enterprises, self-employed people, youth and farmers. Micro credit facility is an effective enabler to generate economic activities, reduce poverty and improve living standards.
It will provide them opportunities to augment their income and move up the social ladder, he noted. He said that the banking sectors also needed to increase the volume of the agricultural credit to the farmers. This, he said, will lead to increase in the yield of crops and income of farmers thus improving the standard of living of the people of the rural areas.-PR