KARACHI, Oct 29: For the first time in 30 years, the State Bank governor is addressing a press conference on Saturday afternoon to present the central bank's annual report for 2003-04.

Never before, the State Bank Governor addressed a press conference on the occasion of the presentation of the annual report. Though there are occasions when the State Bank Governor invited press after the release of annual report. In fact, the State Bank Governor spoke on very few occasions. But whenever he spoke everyone listened to him.

Before 1974 prior to nationalization of the banks, the State Bank governor used to address an annual general meeting of the shareholders as 49 per cent of the shares were with the corporate sector.

The State Bank would issue three documents, which were the Governor's address to the shareholders, an annual statement on currency and finance and a general review of the national economy. It was a much awaited event then.

After banks were nationalised in 1974, the State Bank started issuing annual report to the press. For last four years, the State Bank has started releasing an annual report and a quarterly report for the parliament and it is issued to the media simultaneously. It is for the first time this year that the governor of the central bank has decided to give a briefing to the newsmen.

The central bank's review on the last fiscal year is coming at a time when many people are looking the coming year with fear and doubts. The growing trade imbalance, falling rupee value against dollar and unpredictable situation of crude oil and petrol and price spiral which has pushed inflation to near double digit had left businessmen and people guessing.

Since the time he took over the responsibility as governor of the State Bank, Dr Ishrat Hussain has been advocating the economic reforms. But he took a more pro-active role in last few weeks particularly when he visited the US recently and articulated on a number of national issues.

His suggestion to the US to lower tariff for giving greater access to Pakistani products to the American market evoked editorial support from the powerful New York Times on Thursday.

The government's economic survey for 03-04 has claimed a lot of achievements for the year and made optimistic projections for the year 04-05. The government claimed over 17 per cent industrial growth, a 4 per cent drop in poverty ratio. However, these claims have been challenged by the Social Policy and Development Centre (SPDC) which has raised many questions on government's accounting and book keeping system. The questions raised by the SPDC in its document remained unanswered. But the news came that the top dog of the SPDC is being replaced by end of December this year.

For the current fiscal year the government projected an economic growth of 6.5 per cent. What has happened in the economy during last few weeks has forced a foreign bank ABN Ambro to bring down this growth projection to 6.2 to 6 per cent for the current fiscal year in its periodical review of the national economy.

Obviously, the governor will speak on Saturday on the events that are to take place in the coming year rather than repeating the success stories of the previous years. How does he look ahead if the dollar gets stronger? Will the rupee get the beating? What are the tools available with the Central Bank to counter strong dollarisation trend if it sets in again Pakiistan?

As a convention, the governors of State Bank in Pakistan spoke very rarely on a very few occasions. But whenever they spoke, the people heard them. The culture of the central bank changed in July 1993 when Dr Yaqub took over the responsibility. He had a passion to give speeches in meetings and speak in the press.

In the very first public meeting of Institute of Bankers' in Pakistan (IBP) Dr Yaqub came down heavily on the Pakistani bankers and called them "inefficient, corrupt and cheats''.

It goes to the credit of Dr Yaqub who presented a supplementary budget of Benazir's government in 1995 at a press conference. One hopes that Saturday's press conference of the State Bank's governor is not to spell out government's fiscal measures.