Wednesday, April 9, 2008, Rabi-ul-Sani 2,1429    

Gillani stresses steps to control inflation
Low borrowings, increase in banking sector

Sharaffat Kazmi

Islamabad—Prime Minister Yousaf Raza Gilani on Tuesday stressed the need for adopting practical measures to control inflation and lower prices of essential commodities besides ensuring sustainable economic development.

Talking to Governor State Bank Dr Shamshad Akhtar at PM House, the Prime Minister said controlling inflation was the government’s top priority to pass on the benefits of economic growth to the masses.

The Prime Minister underlined the importance of a well-functioning financial sector for economic stability of the country and said a strong banking system was an essential ingredient for a vibrant economy. He stressed the need for lowering excessive borrowing to reduce inflationary pressures. The Prime Minister said the banking sector should cater the needs of low income people, small and medium enterprises, self-employed people, youth and farmers.

He said micro-credit facility is an effective enabler to generate economic activities, reduce poverty and improve living standards. Gilani said banking sectors needed to increase the volume of agricultural credit to farmers, and added that it would lead to increase in crop yield besides improving the living standard of rural area people. He said improvement in banking sector would encourage global banks to invest in Pakistan.

Dr Akhtar briefed the Prime Minister on various monetary policy measures undertaken to control inflation in the country. She also updated him on developments in banking sector, operations of State Bank, current foreign exchange reserves and the exchange rate situation.