SBP governor sees economic recovery after pandemic

Central bank aims to provide secure, efficient financial system through digital means

The State Bank of Pakistan (SBP) is fully committed to facilitating overseas Pakistanis in getting financially connected with their homeland, remarked SBP Governor Dr Reza Baqir.

He was speaking to overseas Pakistanis at a webinar organised by the Pakistan embassy in Washington DC on Thursday.

Briefing the audience about the state of economy, Baqir emphasised that decisive measures taken by the State Bank and the government before Covid-19 pandemic helped address the balance of payments crisis.

“These bold steps placed the economy on a stronger footing and helped provide room for policy action to combat the pandemic,” he said.

Baqir also outlined various measures implemented by the SBP and the government during the pandemic to safeguard common people and businesses. He expressed confidence in the resumption of economic activity as Covid-19 cases had receded significantly across Pakistan.

Looking ahead, he voiced optimism that the economy would resume its journey towards stabilisation and recovery on which it made strong progress before the pandemic.

Pointing to efforts being made to facilitate overseas Pakistanis, Baqir said the SBP was focusing on providing a secure and efficient financial system through digital means. He reiterated the central bank’s commitment to a digital financial ecosystem, which would feature efficient and secure payment and banking systems.

He pointed out that the central bank and government were actively working to facilitate more the overseas Pakistanis by enhancing their access to financial markets of Pakistan. In particular, the SBP is working on measures to facilitate home remittances, help increase investment in Pakistan’s capital markets, industry, real estate and meet lifestyle needs of non-resident Pakistanis.

He cherished the launch of Roshan Digital Account by Prime Minister Imran Khan through which overseas Pakistanis could invest in the Pakistan Stock Exchange (PSX).

On the occasion, SBP Deputy Governor (Policy) Dr Murtaza Syed gave a detailed presentation on the Roshan Digital Account.

He told webinar participants that for the first time, non-resident Pakistanis had been provided an opportunity to remotely open bank accounts in Pakistan entirely through digital means.

He added that the facility had been initially launched through eight Pakistani banks.

The deputy governor highlighted that the Roshan Digital Account could be opened in Pakistani rupees as well as in a number of foreign currencies.

He elaborated that the digital account could be used for investment in government of Pakistan securities and other kinds of investment instruments, which were also available in Shariah-compliant form.

The digital account can also be used for payments and withdrawal in Pakistan and abroad. Funds available in the account including divestment proceeds could be repatriated without any regulatory or bank approval, he pointed out.

The deputy governor emphasised that the digital account was the beginning of a relationship and connection between the country’s financial system and overseas Pakistanis. The SBP was committed to making the channel work efficiently and mature further in the months and years ahead, he added.

Pakistan’s Ambassador to the US Dr Asad M Khan highlighted that the government gave priority to serving the Pakistani-Americans, who played a crucial role in Pakistan’s national development.

He noted that the Pakistani-American community was the third largest contributor to the flow of remittances to Pakistan.

Published in The Express Tribune, September 18^th, 2020.

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