Apropos letter 'D-8 Summit: central banks', carried by Business Recorder yesterday, one needs to emphasise the fact that all the central banks need to formalise their co-operation by establishing regular information exchange and create peer learning opportunities amongst D-8 central banks. There is no doubt that each of the D-8 members has its strengths in monetary and financial sector issues.
Here, I would urge the SBP to take the lead and volunteer on financial inclusion issues particularly on microfinance and branchless banking development through a peer learning working group. SBP's experience in microfinance and branchless banking regulations has already put Pakistan at the global centre stage of financial inclusion and innovation.
The World Bank's Consultative Group to Assist the Poor (CGAP), in one of its recent studies has recognised Pakistan as one of the fastest growing branchless banking markets in the world, and a laboratory of innovation. One hopes that the D-8 countries will join the proposed peer learning working group and share their unique experiences. Pakistan's economy is facing some unprecedented challenges at this point in time. The situation, therefore, requires the SBP to show more finesse in formulation of monetary policy.