Deputy Governor State Bank of Pakistan Kazi Abdul Muktadir has outlined four key aspects for D-8 central banks’ cooperation for promoting inclusive economic growth amongst the Developing-8 countries.
In his opening remarks at a workshop on “Central Banks Monetary and Financial Cooperation for Promoting Inclusive Economic Growth in D-8 countries” at a local hotel in Islamabad Wednesday, he said “we need to deliberate on sustaining growth in the New Economic Order and enhancing cooperation through trade and capital inflows among the D-8 countries”.
He said the D-8 economies have witnessed remarkable growth despite slow recovery in the global economy. ‘As the D-8 economies accelerate to a new phase, it is critical for central banks to work towards deeper economic and financial integration through sound monetary policies and macroeconomic management. However, regional economic and financial integration should be based on greater exchange rate flexibility, freer capital mobility, transparent rules and regulations’, Mr. Abdul Muktadir added.
He said that sustainability of economic growth can only be ensured through incentives to encourage investment in innovation and technology, and promotion of entrepreneurship. ‘Increased cooperation and deeper economic integration will enable D-8 countries to respond effectively to global challenges,’ SBP Deputy Governor added.
Stressing the need for cooperation to promote innovative Financial Inclusion Policies in the D-8 countries, he said that developing dynamic risk management framework and innovative financial structures can help the banking industry to exploit the huge potential of micro, small and medium enterprises.
SBP Deputy Governor said that besides sharing experiences of policy and development interventions for financial inclusion, ‘we should also share our progress on innovative financial services such as branchless banking’.
Abdul Muktadir said that the true spirit of Islamic Financial system is the way forward that may help the global financial system to recover and regain the lost trust of stakeholders. ‘The Islamic banking industry is expected to grow considerably to play its critical role towards the economic growth in any economy. Global Islamic financial industry stands at US$ 1.1 trillion and recent reports suggest that global Islamic finance market will continue its upsurge and is likely to grow 20 per cent annually between 2011-15 and thereby double in value to reach above US$2 trillion,’ he added.
He also stressed upon the need to establish information exchange and promote peer learning amongst D-8 central banks and added that D-8 countries with a population of over a billion have a strong potential to be a major economic force in the world.
He said that fostering a stable banking system is the key to ensuring sustainable development. ‘However, recent experience of the global financial and Euro crisis has clearly demonstrated that cooperation and coordination among central banks, especially from emerging markets and developing countries, is necessary to diversify and insulate their economies from global shocks and also learn from each other’s experiences that would help in achieving their respective economic goals,’ Mr. Abdul Muktadir added.
SBP Deputy Governor observed the financial meltdown in advanced economies in 2008 unleashed a global crisis which followed by great recession. ‘The central banks around the world therefore had to adopt both conventional and unconventional policy tools to dampen the impact of global crisis,’ he added.
D-8 Summit to deliver positive message to world: analysts
Analyst Dr Ashfaq Hassan said that D-8 summit has many significant aspects especially with reference to economy and all member countries are making effort to increase trade. Talking to a private news channel, he said Pakistan can improve its image through D-8 conference. The conference will deliver a positive message to the world. He said every government will advance D-8 agenda and we are facing temporary crisis which will be overcome . “I think it is in the interest of D-8 to promote trade,”he added. He said world is looking towards Asia due to worst economic situation of Europe and problems in US so Pakistan has key role in the region. He said that Turkey, Malaysia and Indonesia have stable economies and Iran is oil rich country. He said the conference is making effort to promote mutual investment and trade. Analyst Mian Ibrar also said that D-8 is very important for Pakistan because it is a gateway for the three blocks SAARC, Middles East and Central Asia. D-8 trade is increasing with the passage of time and the group will play a key role in the region in current situation, he said.
wishes and ambitions are too lofty to translate in the ground realities. In the four days D-8 Summit, they have given practical shape to one /two policy matters. For example oil rich countries will provide discount / deffered payment facilities on oil and oil products to the countries who are dependent on imports. Similarly all D-8 countries will ease visa on the similar lines and USA / Canada does. In the D-8 countries, there is lack of will, commitment and management to implement policies in the rightful and expedious way.
wishes and ambitions are too lofty to translate in the ground realities. In the four days D-8 Summit, they have not given practical shape to atleast one /two policy matters for implementation in the respective countries. For example, 1 – Oil rich countries will provide discount / deffered payment facilities on oil and oil products to the countries who are dependent on imports. Similarly all D-8 countries will ease visa facility on the similar lines as USA / Canada does. In the D-8 countries, there is lack of will, commitment and management to implement policies in the rightful and expedious way.
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It's a big D-8 party time in Islamabad seems like …
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Eat, drink and talk (big) …
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