M. M. ALAM
KARACHI: Deputy Governor State Bank of Pakistan Riaz Riazuddin while maintaining that the country is moving in the right direction stated: “We can do much more things, much more quickly”.
He was speaking to NewsPakistan.TV after delivering an extensive lecture on Monetary Policy here at the Institute of Bankers Pakistan (IBP)’s main auditorium today.
Riazuddin noted that there were many things that we needed to correct in our economy: “Like the structure of our industry and exports. But these can only be reformed gradually. But we will be moving forward. I am sure that the Government of Pakistan is taking various steps to put things in order in our industry and exports sector”.
He noted that, unlike Pakistan (that has a huge working capital folder), monetary policies are more effective in the West: “Because while their consumers’ loan portfolio is very big, their housing loans are often equal to or more than GDP”.
Harboring on the subject the Deputy Governor SBP told NewsPaksitan.TV: “I think Islamic Banking is doing good for Pakistan and in the process of credit … Islamic banks in Pakistan are playing a much larger role as compared to their conventional interest-based counterparts.
“Although Islamic banks are lesser in number their activity in … credit through Shariah compliant lending is much higher. Their activities are more closely tied to the real sector activities. This is a benefit that is pretty prominent. We are very optimistic that Islamic Banking is going to grow further in Pakistan in future”.
Speaking about CPEC, Riaz Riazuddin held: “Whenever, two countries are cooperating with each other, I think both benefit. And we see that Pakistan is at a much lower development stage than China.
“Therefore, from this point of view Pakistan is going to benefit a lot… Corridor will help China to take the imports much more rapidly and in a cost effective manner…in the process Pakistan will also benefit”.
Riaz Riazuddin, while answering to a query of NewsPakistan.TV, opined: “When I see the work ethics in China, it is much different from the work ethics in Pakistan. It is pretty common knowledge that Chinese workers are much more efficient than Pakistani workers.
“So we have an example…I see another benefit of CPEC that when Chinese are working side by side by Pakistanis the later will quickly learn how to work in a very efficient and effective manner. So I see there are lots of gains that Pakistan will accrue by cooperating with China”.
Husain Lawai, Chief Executive, Institute of Bankers Pakistan termed Riaz Riazuddin’s talk as one the best presentations that he has seen in recent years: “It is IBP’s motto that we should spread the knowledge as far as possible. And this (lecture today) was one of the series that we are doing every month.
“I think Monetary Policy plays an important role in the overall development of an economy. Deputy Governor made an excellent presentation. First he described what monetary policy is and how it is formulated. Then he referred to the practical situation in Pakistan as well. And gave various figures and history of 64 years”.
Husain Lawai, while informing NewsPakistan.TV about the services rendered by IBP said: “We call it a knowledge hub. We prepare fresh graduates to work in banks. We train them in coaching classes and send them for internships in the banks… We prepare middle level staff for the banks.
“We give them training on a variety of subjects. We have now started doing certification of each job – Teller, CSO, Trade Officer, Credit Manager…have to be duly certified… So we have undertaken these programs to improve the overall professional standard of our banks in Pakistan”.
