KARACHI - Governor State Bank of Pakistan (SBP) Syed Salim Raza has said that developing countries will have to stimulate their domestic economies, increase their capacity to consume surplus production in the wake of shrinking exports and achieving sustainable growth to effectively weather international financial crisis. Speaking as a chief guest at a lecture on Financial Meltdown and Global Economic Recession: Causes and Effects organised by Karachi Council on Foreign Relations, Economic Affairs and Law (KCFR) at a local hotel in Karachi on Saturday, Raza dwelt at length over the causes and effects of the ongoing crisis in the international financial markets. He said that in the wake of global financial meltdown, emerging markets have suffered a sharp fall in demand for their products, whether commodities or manufactured goods as major economies have contracted, and a sharp slowdown in private capital flows to the order of over $500b between 2007 and 2009 has taken place. He said Pakistan had not been adversely affected by the global financial crisis as the rest of the world. Nevertheless, one impact of the global financial meltdown is that private inflows of the order we witnessed until 2007 have dried up. The implication is that the role of multilateral inflows has become all the more important. And, the fact that our macroeconomic stabilisation programme is on the right track will help these type of flows to materialise speedily, he said. Raza said that Pakistans economy is likely to grow between 4%-4.5% in the next fiscal year. Responding to a query, he said the inflation is likely to be in single digit in the next fiscal year. He said that the federal government has successfully implemented macroeconomic stabilisation programme and added 'we have been able to meet all the targets of the IMF. He also appreciated the role of IMF in the macroeconomic stabilisation of Pakistan. The SBP Governor said the pledges of $5.28 billion made at the recently concluded Friends of Pakistan meeting in Tokyo show the confidence of international community over economic performance of the government.