FAISALABAD-State Bank of Pakistan (SBP) Deputy Governor Saleem Ullah Friday said inflation had been reined in and would further decrease while other economic indicators were also expected to improve in the coming months.
Addressing the business community in the Faisalabad Chamber of Commerce & Industry (FCCI), he said that although inflation was declining but it was still high and hence the policy rate has been kept unchanged. He said that the PSX had recorded robust activity which would also have a salutary impact on other sectors. He categorically denied that the SBP had claimed any quota restrictions on imports. “It is the issue of banks”, he said.
He further said that the SBP was launching a web portal under the title of “Shunwai” to redress bank-related complaints instantly. He said that withholding the payments of importers without transferring it to departments concerned was a serious issue and the SBP would look into it. He was unhappy over delay in the import of IT-related equipment and appliances and said that the government was trying to encourage IT and hence the import of computers should be given priority. Responding to a question about small traders, he said that under the Prime Minister’s Youth Programme, people up to the age of 45 years could get Rs500,000 interest-free loans. He said that the bank was also trying to facilitate the exporters so that they could earn maximum dollars for the country. He further said that economic stability was directly linked with the SME sector and Rs60b had been allocated for this sector at subsidized rates.
He said that the banking system was digitalized in order to discourage maximum cash transactions. “Currency notes of Rs. 9 trillion are in circulation and to squeeze its volume, we are promoting mobile cheques and online payment systems,” he added.
He said that the government was encouraging construction of warehouses to store commodities and for this purpose a loan was available at 6 percent mark-up. He mentioned the role of SBP in the promotion of agriculture and said that an agriculture festival would be organized in February. About the rise in the dollar rate, he said that it is was a matter of demand and supply and our focus should be on earning maximum dollars by encouraging exports.
Earlier Dr Khurram Tariq, President FCCI, welcomed the SBP deputy governor and said that steps should be taken to fully exploit the potential of Faisalabad. He demanded that a mechanism should be evolved to resolve business disputes. “It would help foreign investors freely invest in Pakistan”, he said and added that banks were more comfortable in providing loans to the government but it affected economic activities. He said that a sizable amount of available funds should be reserved for the exporters.