jameel ahmad : the state bank of pakistan's vision of financial inclusion through financial literacy keynote speech by mr jameel ahmad, governor of the state bank of pakistan, at the pakistan financial literacy week 2024, karachi, 8 march 2024. * * * deputy governors and esteemed colleagues, presidents and chief executives of banks, distinguished guests, ladies and gentlemen! assalam o alaikum and good morning! it is with great pleasure that i am inaugurating the first ever pakistan financial literacy week. this is a first - of its kind endeavour in pakistan to champion financial literacy and inclusion on a national scale. i am really looking forward to the series of events, competitions, and public engagements during the week. these activities aim to promote a better understanding of the financial system and highlight the importance of encouraging responsible financial behaviour in the general public, especially in youngsters. financial inclusion is a cornerstone of a thriving and equitable economy. as the central bank of pakistan, our commitment to fostering financial inclusion is unwavering. we recognize that access to financial services is a fundamental right, and our mission is to empower citizens by providing them with the tools and knowledge needed to participate fully in the economy. when more people have access to financial services, it creates a broad base of consumers, savers, and entrepreneurs, and helps stimulate economic growth. it is our duty to dispel common misconceptions about formal financial services, and to engage the public in an informed, yet non - technical manner, to build their trust in the financial system. this is all the more important in developing economies like pakistan, where the informal economy has a substantial share in overall economic activity and contributes to widespread prevalence of informal and unsafe savings and investment avenues. better knowledge about financial services and products will help channelize resources towards productive use. ladies and gentlemen! financial literacy is our collective responsibility. the government, financial institutions, non - profit organizations, and educational institutions all have a role to play in promoting financial literacy in pakistan. i am happy that state bank of pakistan has been on the forefront in spreading financial literacy in the country. in collaboration with the banking industry and academia, we are proud of leading two iterations of the national financial literacy program, one for adults and one for youngsters. 1 / 3 bis - central bankers'speeches these initiatives are instrumental in disseminating financial literacy to more than 2. 9 million individuals, with more than 50 % female participation

of the time, it is a very good indication of the health of the economy. the reasoning is something like this : if the economy is doing well, companies abroad will want to invest in the country. but we ’ re not living in normal times. most companies in the west are themselves struggling with their domestic markets. would they then consider investing abroad in another country and assume all the risk that entails, especially in times like these? as business leaders, you know the answer better than i do. so where does this leave us? the market opportunities in developing nations are still there. but fdi flows from industrialized nations have been falling. that is where emncs have emerged to fill in that vacuum. and that is where our companies should expand. it ’ s time for reverse capital flows. outward fdi ( ofdi ) is a metric that has been largely forgotten and relegated to just a number in most developing countries ’ balance of payments two decades ago. now, it is increasingly becoming a measure that signifies the health of the country ’ s corporations and their competitiveness abroad. last fiscal year that number was $ 63 million for pakistan. that is very small by any standard and it is a challenge we should undertake to change. i have also noticed that there seems to be some apprehension surrounding outward fdi in pakistan. we have fallen prey to a mindset where inward fdi is good, and outward fdi is bad. from a strictly balance of payments perspective, that is very true ; and it is my job to be concerned about that and at the same time to manage it in a prudent and disciplined manner. the flows of fdi, both inward and outward, reflect something deeper. inward fdi reflects the potential in the domestic economy. outward fdi reflects the willingness and ability of domestic corporations to compete in the international market. the two are not inversely proportional. one of more does not imply less of the other. there is another distinction to be made here. fdi does not include investments in financial assets, such as investments in stock or bond markets. fdi is investment in tangible assets in the real sector. that means that money and capital flows through fdi are not very volatile. and it is the volatility in such flows that keeps any central banker awake at night. let me digress here. the point that i hope to communicate is that our economy should move away from a persisting fascination with inward fdi as a metric of the