KARACHI: The path to a stable economy requires long-term thinking. Consistent policies are essential to attract investment, while short-term structural adjustments pave the way for growth. While export focus holds long-term value, immediate attention should be on maximising domestic production and food security through effective agricultural policies. This can also reduce reliance on imports.
Overcoming data hurdles for financing key sectors, promoting women in banking, and digitalisation are all crucial for a robust and inclusive economic recovery.
These insights were shared by Rehmat Hasnie, President and CEO of the National Bank of Pakistan (NBP) in a recent conversation with A F Ferguson & Co in relation to their ‘2024 Banking Publication’.
The conversation with NBP president provided valuable insights into the key challenges and opportunities facing Pakistan’s banking and economic landscape.
Rehmat Hasnie shared his opinion on various crucial aspects, ranging from economic policy consistency to the importance of female inclusion in the banking sector.
He highlighted consistency in economic policies as a cornerstone for Pakistan’s sustainable recovery and growth trajectory and emphasised the need for policies that provide a stable environment for investment, both from within the country and abroad. Such consistency not only fosters investor confidence but also paves the way for long-term economic stability, he said.
Hasnie termed structural reforms as imperative for meaningful economic growth in the short to medium term. These reforms should come with a clear roadmap, ensuring that they contribute positively to the overall economic landscape. He was confident that by addressing structural deficiencies, Pakistan could unlock its true potential and chart a course toward prosperity.
He also underscored investments in export-oriented sectors as crucial for expanding Pakistan’s economic horizons. However, the NBP president pointed out that such investments often necessitate imports to build the necessary capacity. To mitigate dependency on imports, a focus on enhancing domestic production capabilities is essential in the immediate term.
He emphasised ensuring food security as a priority, with a need for an effective agricultural policy. He opined that by focusing on critical commodities for domestic consumption, Pakistan can reduce its reliance on imports and potentially indigenize certain import-dependent sectors.
He acknowledged challenges in scaling priority sector financing, particularly concerning data and documentation. Addressing these challenges is vital to ensure that financing reaches those sectors that need it the most.
Another crucial aspect discussed was the need to increase female workforce participation in the banking sector.
Rehmat Hasnie stressed the importance of not only providing equal opportunities but also ensuring that women have access to banking and finance services.
Empowering women in the financial sector not only promotes gender equality but also contributes to overall economic development, he said.
Further, Digital incentives were highlighted as a key strategy to reduce cash circulation during the discussion. He said that by promoting digital payments and transactions, Pakistan can enhance financial inclusion, streamline processes, and combat issues such as corruption and tax evasion.
Copyright Business Recorder, 2024