KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has stated that there exists gaps in the credit and investment requirement of the private sector in the country, as he urged capital markets to increase the level of transparency in their operations to strengthen public trust and attract investments.
He passed these remarks while speaking at the 22nd edition of Annual Excellence Awards hosted by CFA Society Pakistan on Monday.
“While highlighting the importance of capital markets in emerging economies’ pursuit of sustainable and inclusive growth, he [Ahmad] referred to a gap in the credit and investment needs of the private sector in the country,” a SBP statement read.
“This gap can be met through continued efforts to improve capital market infrastructure and governance; developing alternative investment products; expanding digital access and simplifying onboarding procedures; and enhancing transparency to increase public trust in the financial markets.”
Governor Ahmad maintained that Pakistan had achieved significant macroeconomic stability by pursuing coordinated and prudent monetary and fiscal policies, which led to a sharp reduction in inflation, and a rebuilding of external and fiscal buffers.
Last week, Finance Minister Muhammad Aurangzeb said SBP governor was scheduled to meet chief executive officers (CEOs) of commercial and microfinance banks, with an aim to direct the banks ramp up financing to the private sector, particularly to the priority sectors.
“I am not going to accept that banks are not willing to step up in terms of providing credit to the private sector,” Aurangzeb said then.
The finance minister said the government had devised a policy to provide collateral-free financing and subsidies financing to small farmers despite a tight budget for the ongoing fiscal year 2025-26.
“The policy provides a partial risk coverage to banks involved in offering the financing to small farmers. Despite providing subsidy and partial risk coverage to banks, if they do not increase the funding to the private sector then it is unacceptable,” he said then while speaking at the Karachi Chamber of Commerce (KCCI).
