Development of microfinance banks, SMEs can boost economy: Husain

Top experts highlight Pakistan’s achievements.

KARACHI:

Pakistan can boost its economic growth by encouraging development of microfinance banks, small farmers and small and medium enterprises (SMEs), according to State Bank of Pakistan’s (SBP) former governor Dr Ishrat Husain.

He was speaking at the Mera Pakistan conference here on Friday. The Karachi Chamber of Commerce and Industry (KCCI) and Commecs Institute of Business and Emerging Sciences organised the event.

Husain said the ongoing economic reforms and economic agenda should target the agriculture sector, particularly small farmers, to begin a new journey towards economic progress.

He said Pakistan was the first country to introduce a microfinance regulatory system in the world. “Ten years down the road, I am pleased to see growth in the microfinance sector,” he added.

Highlighting the growth in economy over the past 60 years, Husain said that Pakistan has not only fed its huge population of over 170 million but it has also been a leading exporter of rice, cotton and other commodities.

Former federal minister for science and technology Prof Dr Attaur Rehman said Pakistan has shown tremendous growth in science and technology and achieved milestones in the last decade that have been recognised the world over.

He said the number of public universities has doubled in the country over the last 10 years, adding the number of PhDs has increased phenomenally that will further develop research activity and education. He said now three Pakistani universities come in the top 500 universities of the world owing to their research and publications of research papers.

Former federal minister for industries, production and special initiatives Jahangir Khan Tareen said that milk production could be doubled easily if the government introduced a national policy on the dairy sector.

He said Pakistan is among top five milk producers of the world but lack of basic knowledge and research result in wastage of a huge quantity of milk every year. “Milk prices in the country will continuously increase unless the government launches a programme to educate rural population on dairy farming,” he cautioned.

Owing to a unique composition of land, water and sunlight, Pakistan can multiply its agriculture output in a couple of years, he said.

Renowned scientist Dr Samar Mubarakmand said that mineral wealth need to be developed, which offers great potential to the economy. He said that a power plant of 50 megawatts will soon start working, based on underground coal gasification technology. He informed that small and big industries can produce cheap electricity at just Rs2.5 per unit with coal-based power plants.

He asked industrialists to start shifting focus from gas-run power plants to coal-based projects owing to fast depleting gas reserves of the country. “Our energy-starved industries must start shifting their captive power plants to coal which is not only cheap but also a reliable source of energy,” he added.

Published in The Express Tribune, March 12^th, 2011.