LAHORE, March 3 (APP): Governor State Bank of Pakistan
(SBP) Ashraf Mahmood Wathra Friday said Cabinet Committee
had approved an agreement between the SBP and Central Bank
of Iran that would soon be formally signed.
He said the agreement would allow Pakistani and
Iranian exporters to settle their claims through the
State Bank of Pakistan and Central Bank of Iran,
respectively.
He was speaking at Lahore Chamber of Commerce &
Industry (LCCI).
The SBP Governor said: “Trade with Iran is very close to
my heart. I am pursuing since my appointment without wasting
any moment”.
The agreement between the State Bank of Pakistan and
Central Bank of Iran would help boost mutual trade volume,
he added.
He said in Pakistan and India, credit-to-GDP ratio
was correlated to tax-to-GDP ratio that was around 11 per
cent and 26 per cent in Pakistan and India, respectively.
He said credit-to-GDP ratio would automatically
better tax-to-GDP ratio in Pakistan.
To a question, Ashraf Mahmood Wathra said issue of
charity collection by Islamic banks would be monitored.
He said restriction of cash margin had been imposed
on selected consumer items and country was spending around
$ 8.5 billion on the import of consumer items out of which
a number of merchandise were unnecessary and being produced
locally.
He said late payment limit of 90-day for the industries
was limited to information only, not for labeling as defaulter.
He said law for establishment of credit bureaus had
been approved that would help transmission of loans.
He said economy had turned around due to supportive
macroeconomic policies, successful completion of IMF
programme, sharp fall in oil prices and improvement in
energy supplies.
He said markup and inflation were at the lowest,
real GDP growth rate was at 4.7 per cent in FY 2016 that
was only 2.8 per cent during FY 2009-13, remittances grew
to 19.9 per cent in 2016 from 11 per cent in during
2009-13.
He said budget deficit had been reduced to 4.6 per
cent in 2016 as compared to 8.2 per cent during
2009-13.
Speaking on the accasion, LCCI President Abdul Basit
said access of private sector to the credit should be easy
besides enhancing credit-to-GDP ratio.
He said credit-to-GDP ratio in New Zealand, China,
India and Pakistan was 146 per cent, 141 per cent, 51
per cent and 15 per cent, respectively.
He said “Banks should be directed to allocate a
specific part of loan portfolio for the SME sector and
lending to SME is nominal.”
He said only one organisation was working for
industry’s credit rating and there should be a separate
agency for credit rating of SMEs.
He said banks should be given access to the database
of Securities & Exchange Commission of Pakistan and Land
Record Management Information System for online
verifications.
The LCCI President called for establishment of
banking channels between Pakistan and Iran and Pakistan
and African countries to ensure documented trade.
MNA Pervez Malik spoke high of economic achievements
by the present regime.
He said that critical reforms in fiscal, monetary,
financial and energy sectors had brought macroeconomic
stability.
He said new phase of reforms would eventuaaly
accelerate the economic growth.
Deputy Governor of SBP Saeed Ahmed said Board of
Directors of EXIM Bank was established by the Ministry
of Finance. He added the LCCI proposal for representation
of private sector in the BoD had already been forwarded
to the Ministry.