Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh has urged on the need of preserving a ‘stable’ micro financing environment to tackle the economic issues of Pakistan.
The advisor said that rising fiscal deficits have hampered government’s ability to make capital available in the development sectors. “This combination of microfinance can help in tackling the issues of low savings, low investment, problem of financial inclusion, documentation and above all it’s a good instrument for uplifting the poor,” said Shaikh while talking about Pakistan economy on Wednesday.
Speaking about the economic challenges, the advisor said that Pakistan have had a low savings rate of about 10 percent, whereas the rate of investment have also been low at 15pc as compared to other regions that have reached investment rate of 30pc.
“So that’s the area that we need to do well, and I think microfinance can help at the same time in our tax policies especially documentation, which has been an area we haven’t done good job. Microfinance with its outreach and capacity to enhance the scope of its activities can help with the documentation of the economy,” said Shaikh.