WASHINGTON, Jan 28: Governor, State Bank Dr Ishrat Husain on Tuesday said "outward-looking strategy" that promotes exports and integrates Pakistan into the world economy is in the best interest of the country for accelerating growth and reducing poverty.
Speaking on 'Islamization and the Pakistani Economy,' as keynote speaker at the day-long conference at the Woodrow Wilson International Center for Scholars, he said Pakistan would continue to have liberal foreign exchange and low tariff regime without recourse to any non-tariff barriers.
Private sector, he said, was the main vehicle for producing and exchanging goods and services for the domestic economy as well as the rest of the world. Prices should be determined by the market forces but monopolies regulated by independent agencies.
The governor said the role of the state was to provide security of life and property, had an independent judiciary that could arbitrate disputes and enforce contracts, build physical infrastructure, nurture human skills and train manpower and maintain an enabling macroeconomic and regulatory environment in which businesses could flourish.
The value of Pakistani currency in relation to other foreign currencies would be determined through supply and demand in the foreign exchange markets. A free-floating exchange rate policy was being pursued at present and would continue in the future.
Prof. Khurshid Ahmad, Chairman, Institute of Policy Studies (ISS), said the Islamic paradigm has freedom, justice and solidarity rolled into one as its defining character.
In his address, Shahid Javed Burki said Islamization and private enterprise can very much work together. He lauded the sound economic policies pursued by Pakistan, which reflected soundly on the expertise of economic and fiscal managers.
In the third session on 'The Political and Social Dimensions of an Islamic Economy,' Parvez Hasan of the World Bank said, he was personally not in favour of "a mix of ethics with economy."
"High population growth coupled with excessive centralization," he said, "has been the main cause of our ills." In response to questions, Dr. Ishrat Hasan said Pakistan government has effected low interest rates as low as 7 per cent.
Governor State Bank said there was no consideration at this time for effecting land reforms, as law of inheritance has already cause fragmentation of landed property.-APP