Governor State Bank of Pakistan (SBP) Dr Shamshad Akhtar said on Friday that US $3.059 billion has been received as first tranche of IMF loan and hoped that funding will also flow to Pakistan from World Bank (WB) and Asian Development Bank (ADB).
While addressing a meeting of industrialists and business entrepreneurs at Multan Chamber of Commerce and Industry (MCCI), she said that Pakistani banking sector stands on sound footing and disbursing credit to every sector despite the global economic crisis that left US institutions face bankruptcy and others seeking financial support from government.
SBP Governor said that banks were advancing loans to every sector and credit to agriculture sector has elevated manifold from merely Rs 50 billion in the past. She admitted there was reduction in personal loans but added that 70 percent banks were disbursing small loans to SME sector.
Dr Shamshad said that the central bank has taken many measures to improve the financial market and added that now it was SBP's mission to focus financial development and development of less developed areas. She disclosed that SBP will open two more offices in Balochistan.
Dr Shamshad said that six microfinance banks were operational in the country while two NGOs have also been issued licenses for micro credit banking. She said economic report of Pakistan and financial review statement will be prepared and published within a week. She recalled that Pakistan's economic condition was better by the beginning of 2008 adding that its growth rate was 7.3 percent and foreign investment was flowing into the country. However, rise in price of oil and food in the international market played pivotal role in triggering economic crisis in the world.
Dr Shamshad said that government's expenses on offering subsidies to the people swelled to 8.4 percent of the GDP. She said government has imposed taxes on import of luxury items that avoided further aggravation of economic condition.
She said that government had talked to the international community for help to steer Pakistan out of economic trouble and Asian Development Bank (ABD) had released US $500 million instalment of loan. Now IMF tranche has also been received which will help strengthen the national economy, she added. SBP Governor said government has decided not to opt for loan from the central bank from this November during the current fiscal year. She said that our reserves of foreign exchange have risen up to a reasonable level and price of dollar has also come down. Situation is on way to improvement now, she added.