Karachi—The agricultural credit to grow by 10 per cent each year, over the next 5 years to reach Rs1 trillion by year 2020 and 500,000 new farmers are expected to be added into the formal financial network by 2020 as per the Vision 2020 of the State Bank of Pakistan. This was discussed by the SBP executives during the visit of Federal Minister for Planning, Development and Reforms Prof. Ahsan Iqbal to the SBP. The Federal Minister said that all institutions of the country should work hard for making Pakistan amongst top 25 economies of the world by 2025. He was presiding over a meeting with Governor State Bank of Pakistan Mr. Ashraf Mahmood Wathra of the senior management of Planning Commission and SBP in Karachi.
Expressing his thoughts, Ahsan Iqbal said, ”Making Pakistan amongst top 25 economies of the world by 2025 requires very concerted and coordinated efforts by those stakeholders who are involved in economic management of the country,” adding, ”We have not been able to realize our true potential in many areas including industry, export, agriculture and human resource due to lack of shared vision.” He said Pakistan is now well poised to growth and it is important that all relevant institutions work as a team in order to understand future challenges and opportunities. Extolling the role played by State Bank of Pakistan, the minister said that State Bank is one of Pakistan’s success stories and one of the major institutions involved in the economic management of the country.
SBP has wealth of experience and knowledge and Planning Commission intends to collaborate with SBP in order to arrive at shared understanding and knowledge for future of country’s economy, said the minister. Welcoming the minister, Governor SBP Ashraf Mahmood Wathra said State Bank is always forthcoming in addressing economic challenges of the country. The Governor stated that the initiative for engagement of SBP and Planning Commission on various economic issues to share expertise and knowledge on different subjects is a step in the right direction. He assured the minister that SBP will work closely with Planning Commission for evolving a roadmap for economic progress of the country. Later on, senior officials of SBP gave a detailed presentation on adoption of flexible inflation targeting regime; challenges and potential strategies to boost country’s exports and initiatives taken for strengthening of agriculture sector.
The minister was apprised that with a view to enhance the effectiveness of monetary policy, SBP plans to introduce a flexible inflation-targeting framework as its monetary policy regime. By introducing an explicit range of inflation target, it would be easier for household and businesses to understand economic conditions and form future expectations accordingly. Moreover, the strategy would allow SBP to balance the need for price stability with economic growth.