Led by the Pakistan Japan Business Forum, the State Bank Governor Dr Reza Baqir was invited for an interactive session with the members of nine other bi-lateral business forums. Such bi-lateral forums consist of members from Pakistan and so also nationals from respective countries they represent. Welcoming the Governor, Sohail P. Ahmed, Chairman of the Japan Forum pointed to the disquiet witnessed in the business community primarily due to exchange rate, interest rate and inflation which has created a negative perception, and which has harmed the economy more than the fact. He also pointed out to the hot money; over $ 1 Billion that has been invested in T-Bills because of high interest rates.
The Governor clarified that the risks posed by such investments are limited and account for less than two percent of the total outstanding marketable government securities which translates to less than half a percent of GDP. Besides, the tenor of such investments has been increasing with more money coming in for longer duration instruments as investor confidence grows. He gave the example of several emerging economies that have attracted investments from outside in much greater amounts on a sustainable basis in their local currency debt markets while using that as a major stimulus in their macroeconomic development.
In the Q&A session, several questions were put to the Governor about the difficulties being faced by various sections of the business community. The common factor was the timely availability of foreign exchange to meet their demands both in the trading, manufacturing and in the services sector to deal with requirements such as repatriating funds towards payment of royalties and servicing requirements both in the manufacturing and trading sectors. The Governor directed Arshad Mehmood Bhatti, Director, Exchange Policy Department, to elaborate upon the steps being taken by SBP to ease the situation and who later individually met several businessmen to hear their grievances and invited them to visit with their specific issues to be looked into.
The interactive session was largely attended by a cross-section of businessmen. The Forums participating were, Pakistan Japan Business Forum, German Pakistan Chamber of Commerce and Industry, Swiss Business Council, Pakistan Russia Business Forum, Pakistan Philippines Business Forum, Pakistan German Business Forum, Pakistan Australia Business Forum, Pakistan Korea Business Council and Malaysia Friendship Association and Pakistan Belgium Luxembourg Business Forum.-PR