KARACHI, Feb 14: State Bank Governor Dr Ishrat Husain says a major obstacle inhibiting investment in industries is high cost of electricity mainly due to dependence on oil for power generation.

Speaking as the chief guest at a function held by Small & Medium Enterprises Association of Pakistan (SAMEA) just before Eid-ul-Azha he said that hydel power generation projects and exploration of new gas fields should be given top priority to reduce dependence on thermal power. The function was held to mark the second anniversary of SAMEA, says a press release.

Responding to a point raised by SAMEA president Zafar Iqbal the SBP chief said that conventional banking could not be done away with just by one stroke of pen due to its far reaching implications. But he reminded the audience that Almeezan Bank being the first Islamic commercial bank has already started working and the SBP has also allowed the commercial banks to open dedicated Islamic banking branches.