- SBP governor terms regional cooperation in banking and finance key to facilitate cross border trade, highlights need for lower transaction costs, staff’s capacity building, creation of statistical database and collaborative research studies
Addressing the 22nd SAARCFINANCE Coordinators’ Meeting at National Institute of Banking and Finance (NIBAF), Islamabad on Monday, SAARCFINANCE Chairman and State Bank of Pakistan (SBP) Governor Ashraf Mahmood Wathra has urged the SAARCFINANCE coordinators to further fortify regional cooperation, especially in the areas of banking and finance, which in turn can facilitate cross-border trade between the member states.
The SAARCFINANCE coordinators and alternate coordinators from SAARC central banks and focal points from ministries of finance of the region, Ministry of Foreign Affairs in Pakistan and SBP attended the meeting.
The governor welcomed the meeting participants and shared the decision of the 30th SAARCFINANCE Group Meeting, which identifies five areas for cooperation, which will ultimately work as a roadmap for the network. These five areas include reducing the transaction costs of cross-border remittances in the SAARC region, cross-border trade in the region, capacity building of the staff, the creation of SAARCFINANCE statistical database, and undertaking of collaborative research studies to assess issues of common interest.
Wathra expressed hope that these areas for mutual cooperation would help build a clear mandate for future cooperation among the members.
The governor highlighted some recent initiatives undertaken by the SAARCFINANCE Network, such as the availability of short-term liquidity for members under the SAARC swap arrangement, capacity building programs for officials of members under the SAARCFINANCE scholarship scheme, the dialogue and exchange of knowledge on issues of mutual interest through SAARCFINANCE portal, the creation of regional statistical database, and the recent initiative on collaborative research studies. These initiatives are beneficial in fostering closer relationships and building human capability in practical fields of central banking amongst SAARC partners.
The meeting was primarily aimed at reviewing the progress of SAARCFINANCE activities and to prepare the draft agenda for the forthcoming 31st SAARCFINANCE Group Meeting, which will be held alongside the annual meetings of the IMF, World Bank in Lima, Peru during October 9 to 11.