KARACHI: State Bank of Pakistan Governor Tariq Bajwa on Wednesday emphasised the need for strong coordination between the central bank and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for the promotion of the trade and industry.

“FPCCI’s role for promoting trade and industry is commendable. SBP is also working for the same. There is a need for strong coordination,” said Mr Bajwa at an interactive session, attended by important members of the business community at the Federation House.

The SBP governor said that he would visit other major chambers of the country including the Quetta Chamber, so that coordinated and practical policies could be developed.

He said the three major challenges to the present government are poor law and order situation, energy crisis and availability of credit, which have now been resolved to a great extent.

“Availability of credit to private sector has shown quantum jump over last year,” he informed.

About the fast increase of the imports bill against the declining exports, the governor explained that there was 32 per cent increase in the import of capital goods which is a good sign for the economic growth of the country.

He said that 5.3pc economic growth was the highest in last decade. The government’s target was 6pc. By prudent policies of the government and the State Bank, the inflation rate was brought down to below 5pc. To a question from media, he assured that Pakistan’s economy was strong, stable and resilient enough.

He referred to the vice president of the World Bank’s recent observation that Pakistan was understating its economic growth, whereas India was overstating at least by 1pc. This was not good for Pakistan as it put the country at low profile for the international credit agencies, making it less attractive for foreign investment.

“There is a need to focus on small and medium enterprises (SMEs) which are facing many problems. The total credit given to different sectors of the economy should be at least 17pc,” he said.

He urged that FPCCI committee on SMEs should closely work with SBP team working for promotion of these. Mr Bajwa also underlined the need for training to banks officials and SMEs representatives on the documentation and financing matters.

He added that for improved economic growth, it is essential to strengthen agriculture through modernisation, he mentioned. “Produc­tivity in our country has become stagnant. It must be enhanced,” he said.

He regretted that inter-regional disparity was increasing in the country, which is a matter of concern. Balochistan is much behind in credit utilisation which is leading to low economic activity there.

For rectification of this situation, he said, he along with his team was going to Quetta the next day.

Published in Dawn, August 24th, 2017