Digitalisation is a medium to achieve the broader objective of making the financial sector more productive, efficient and inclusive, said State Bank of Pakistan (SBP) Governor Dr Reza Baqir.
Talking to governors of the Saudi Central Bank and Bank Indonesia in separate meetings at the 15th Islamic Finance Services Board (IFSB) Summit 2021 on Thursday, Baqir emphasised the importance of digitalisation of the financial sector.
“Digitalisation has massive potential to accelerate the pace of financial inclusion,” he said. “Technology-driven solutions are the key to unlocking doors of the financial sector for the unserved and underserved segments of society, particularly women.”
He also mentioned the recent initiatives taken by the SBP in the areas of Islamic banking, digitalisation, financial inclusion and low-cost housing finance.
During the meetings, various topics of mutual interest were discussed and the debate centered around Islamic banking, digitalisation, open banking and financial inclusion.
Baqir outlined the measures taken by the government of Pakistan to successfully contain the spread of Covid-19 in the country.
He elaborated on the measures taken by the SBP to inject liquidity into the economy and support the banking sector during Covid-19, which helped combat unemployment during the lockdown.
The governors of Saudi and Indonesian central banks also shared their experiences during the Covid-19 pandemic and stated that digital transformation could play a pivotal role in the expansion of Islamic finance and help improve financial inclusion.
Published in The Express Tribune, November 12th, 2021.