Low savings rate in Pakistan is an obstacle to investment, expansion of the capital market is inevitable — Governor of the State Bank

Karachi: Governor State Bank Jamil Ahmed has said that Pakistan’s economic growth is showing a positive trend, however, the pace of investment is still limited due to the low trend of savings in the country.

Addressing a consultative workshop of the Securities and Exchange Commission and the Pakistan Banks Association, he said that in the current situation, the country’s savings rate is only 7.4 percent, which is much lower than other countries in the region.

He added that at present the number of individual accounts in the capital market is not more than four hundred thousand, which is clear that the majority of investors are still limited to the banking sector.

“Banks and the capital market will have to work together to increase the financial inclusion of the public and introduce new investment opportunities,” he said.

Experts believe that if financial institutions work under a common strategy, not only will savings increase, but investment and economic growth will also be strengthened.

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