KARACHI, July 26: Governor, State Bank of Pakistan, Ishrat Hussain, has underlined the need for making electronic banking transactions more secure and dependable.

Speaking at a seminar and exhibition on “Technological innovations in the financial sector” on Saturday, Mr Hussain said commercial banks had been allowed encryption by the Pakistan Telecommunication Company in an attempt to make electronic banking transactions safer. He added that the electronic banking would not catch on in the country unless people put their trust in it.

He observed that the Electronic Transaction Ordinance was a step in the right direction. “The State Bank of Pakistan is also undertaking courses for its personnel, so that they could deal with financial crimes. Cyber criminals should be dealt with under a suitable law,” he said.

The SBP governor urged the Sindh government to computerize the land records in the province. “The lack of expansion in the housing and construction sectors is a major barrier in the growth of rural areas. The poor manner in which land records are kept is responsible for this, slowing down capital formation. This is also a cause of wasteful litigation in the country,” he said.

Commending the Computer Society of Pakistan (CSP) for organizing the event in collaboration with the Pakistan Software Houses Association (PSHA) and the Sindh information technology department, he said that the SBP had chalked out a $24 million automation project. He informed the audience that sub-contracts worth $3.5 million had already been awarded to IT professionals.

He said that commercial banks had been allowed to open Internet merchant accounts. “At least 30 out of 40 commercial banks have already joined interaction switches. The SBP has acquired a swift connection for foreign financial transactions. It has also made it mandatory for other banks to do so,” he said.

The SBP governor informed the audience that 40 automatic teller machines were operating in the country.

In his welcome speech, the president of the CSP, Abdul Ghaffar Memon, said that excellent softwares had been developed by Pakistani IT professionals.

He cited the example of the Muslim Commercial Bank whose software for online banking and ATM network had been developed by its own staff.

He recalled that the CSP had been established in 1972 which had first held an exhibition in 1982.

“The Computer Society of Pakistan carried out an information technology manpower survey in 2000. Another survey is being carried out whose results will be issued next year,” he said.

He said that the Sindh IT department, in collaboration with the the Computer Society and the PSHA, planned to set up an accreditation council, which would certify IT professionals.

He said that a memorandum of understanding had been signed with the British Computer Society, which had received a charter in the United Kingdom to certify IT professionals.