A seminar on 'Challenges and Opportunities for Pakistan in Global Financial Crisis' was organised by Karachi Branch Council (KBC) of the Institute of Cost and Management Accountants of Pakistan (ICMAP) in collaboration with Hyderabad Chamber of Commerce and Industry (HCCI) in Hyderabad.
An ICMAP statement issued here on Monday said that Zubair Ahmed Khan, Sindh Minister for Rural Development, Vice President ICMAP Mohammad Hanif Ajari, guest speaker and Director Strategic Development, Getz Pharma, Shafiq Ahmed Qureshi, President, Hyderabad Chamber of Commerce and Industry, discussed the impact of the global financial turmoil particularly in Pakistan and the challenges facing the region.
The speakers pointed out that in 2008, Asia was again threatened by financial turmoil. The trouble that began in the US last year and then spread to other regions has arrived at Asia's shore. Fortunately, the region learned its lessons well from the crisis of a decade ago. They said that developing Asian governments have pursued sound macroeconomic policies, companies have strengthened balance sheets, and banks have reduced non-performing loans.
Most of the region's economies are now fundamentally stable. And massive foreign exchange reserves will help ward off the worst of the crisis fallout. To date, it was pointed out, individual nation like Pakistan in Asia has responded to the new crisis with level-headed, pragmatic measures to limit its impact on their economies.
But if heightened financial stress persists, the impact on growth is likely to be pronounced. They further pointed out that the investors are already feeling the pain. Pakistan is discussing a rescue plan with the IMF. The Sindh Minister for Rural Development, Zubair Ahmed Khan, the chief guest and guest speaker, Mohammad Hanif Ajari, apprised of the crisis impact on Pakistan and said that there are clearly some difficult challenges ahead for Pakistan.
In the short term, Pakistan's economic and financial systems will likely come under increased pressure as the effects of the global credit shortage intensify. It is difficult to forecast economic growth at times like this. They addressed immediate challenges and current responses: as the spread of the financial crisis affects regional and global growth prospects, effective responses must be found at all three levels: national, regional and global.
They said that national policies would need to focus on mitigating the impact of tighter global financial conditions and weaker growth, while providing targeted safety nets for those most affected. At the regional level, authorities need to strengthen their crisis management frameworks. Policymakers should review contingency plans.
They should address the ramifications of a weakened interbank market, ensure the adequacy of deposit insurance and public re-capitalisation schemes where appropriate, and extend government guarantees to bank funding sources, depending on resource availability.
Ultimately, it was further stated, a global crisis requires a global solution. Aside from the immediate short-term actions to stabilise finance, we need a longer-term plan for reforming the regulatory and institutional framework for the world's financial systems.
With its growing influence on the global economy, Pakistan must have a seat at any table seeking a solution. Asia is poised to take even greater responsibility as a co-operative and responsible partner to help address global challenges. Shafiq Ahmed Qureshi, President, Hyderabad Chamber of Commerce and Industry presented welcome address and Attaullah A. Rasheed, Chairman, KBC of ICMAP presented vote of thanks.