As the third wave continues to disrupt economies worldwide, Pakistan’s economy has a lot going on in its favour this time, according to the Dr. Raza Baqir, Governor of the State Bank of Pakistan (SBP) in an online session with Nest I/O.
Dr. Raza Baqir explained how the country’s demographic profile, growing mobile penetration rate, and positive economic indicators, especially during the COVID-19 pandemic, have contributed to an increase in investments.
Use of cash promotes informal economy and helps illegal activities, on the other hand by using the Raast one is doing the right thing by transacting using formal digital Financial Service and contributing to Pakistan's economy.
SBP along with Karandaaz Pakistan has developed this new system for processing instant payments.
The Prime Minister in his address said a cash-based economy is the biggest hurdle in tapping the true potential of Pakistan.
“From Monday onwards, the central bank will initiate a new payment system called ‘Rast’, as we believe this a right way forward for the country,” said Kamil.
Kamil informed that the upcoming payment system has been implemented in advanced countries i.e. UK and Australia.
The prime minister was apprised of the reduction in prices of sugar and flour, besides the positive effects of substantial price reduction of potato, onion and chicken.
Moreover, removal of Sales Tax on locally manufactured phones was also approved in principle and modalities would be worked out in consultation with the Finance Division.
The meeting took stock of the progress on decisions made for improving the accessibility infrastructure for persons with disabilities, said SBP statement here.
The SBP Governor said the State Bank was focusing on Digital Financial Services (DFS) and was bringing a system where payments would be done in seconds.
The country’s central bank head in the State Bank of Pakistan Annual Report FY20 was of the view that despite numerous challenges during FY20, Pakistan’s economy performed relatively better, particularly on the external and fiscal fronts.
“The State Bank of Pakistan’s MonetaryPolicy Committee met today under the chairmanship of Governor #SBP Dr. Reza Baqir and decided to keep the policy rate unchanged at 7 percent,”