KARACHI - State Bank of Pakistan Governor Ashraf Wathra Tuesday highlighted the role of State Bank of Pakistan in solidifying state efforts to achieve a higher and sustainable economic growth in Pakistan.

Speaking at a 21st Zahid Husain, first SBP Governor, Memorial Lecture at a local hotel, Wathra said, “In fact, SBP is one of the few central banks having economic development as part of its mandated act.”

Professor Timothy John Besley the W. Arthur Lewis, Professor of Development Economics and Political Science at London School of Economics (LSE), UK, shed light on the role of state capacities stimulating economic growth and defined the state capacities as “the forms of capital which make the government work more effectively”. He discussed three types of state capacity namely fiscal capacity, legal capacity and collective capacity. He argued that these capacities are built up over time, co-evolve and complement each other. He explained the process the fiscal capacity supports legal capacity; the legal capacity supports collective capacity and then collective capacity supports fiscal capacity completing the loop.

Earlier, in his inaugural address, Governor SBP introduced the guest speaker and recounted his achievements in the field of economic research and policy making.

Justice (r) Nasir Aslam Zahid, son of (late) Zahid Husain was chief guest on the occasion. A short video in the beginning was also shown to the audience that familiarized them with the achievements of (late) Zahid Husain and his role in providing foundation and nurturing a vibrant financial system in Pakistan.