framework, making sure that the critical functions of these financial institutions continue in the event of failure. given that it will involve legislative processes, the move towards development of a bis central bankers ’ speeches resolution regime may be somewhat slow. therefore, emerging markets and developing economies ( emde ), taking lead from the proposed framework for g - sifis, need to start work on the development of a resolution regime now rather than wait for a final d - sifis framework. another important issue for the emerging market economies from a stability perspective is on account of the presence of foreign financial institutions. the regulators of emerging markets may not be fully equipped to understand the risk profile of a globally active institution operating in their countries. risks also arise due to financial interlinkages between emerging and foreign financial markets. for the host emerging economy, an important issue is possible market disruption through an adverse impact on local lending decisions and depositors safeguard as a result of problems at the parent institution level. regulatory colleges should therefore be encouraged by the home regulators across the regions. the practice of conducting regulatory colleges for systemically important institutions would assist regulators in dealing with the global issues in a coordinated manner. i would like to point out that regulation and monitoring of sifis is just one of the aspects in overall macro - prudential regulations. in order to implement a complete reform agenda, sifis framework needs to be dovetailed with other initiatives of financial stability. these may include an elaborate crisis management framework, work on countercyclical measures, framework for effective resolution of problem institutions, legal cover for enforcement etc. increased coordination among authorities both at top level as well as operational level is critical for successful implementation of a global financial agenda. for the purpose, there is a need to establish working committees under the regional consultative group terms of reference. i therefore propose the establishment of working level committees to be involved in the development of policy level documents on financial stability related issues from the emdes perspective. thank you for your attention! bis central bankers ’ speeches annexure 1 the list 29 g - sifis is as follows : u. s. bank of america, bank of new york mellon, citigroup, goldman sachs, j. p. morgan ( jpm ), morgan stanley, state street and wells fargo u. k. royal bank of scotland, lloyds banking group, barclays, hsbc holdings ; france : credit agricole, bnp paribas, banque populaire,

in check by managing to lower core inflation ; slippages in inflation target were inevitable given the uptrend in the global commodity prices as well as structural complexities and inefficiencies of wholesale and retail markets. global and domestic cyclical events will undoubtedly pose frequent challenges for small and open economies, like pakistan. recognizing this, the new government will need to strengthen the medium - term macroeconomic stabilization program and front load it, while accelerating the implementation of structural reforms to realign deficits to sustainable levels. keeping this in perspective, the government ’ s broader economy strategy for the next few years will need to include : i. increasing domestic resource mobilization to raise revenue / gdp ratio by at least 5 percentage points of gdp. this is possible given the scope for enlargement of tax base : the existing tax regime collects almost 68 % of taxes from manufacturing and corporate sector, while agriculture and services sectors ( aside from banks ) are exempt and segments of economy are outside tax net ; ii. nation - wide campaign to raise saving levels through continued efforts to raising awareness and deepening financial markets ; iii. restricting large proportion of new resource mobilization for public investment, while prioritizing the recurrent expenditures through a major overhauling of the government machinery ; iv. restoring the momentum of privatization of state - owned enterprises, which has been one of the most successful in asia. the government has sold off cumulatively almost $ 7 billion of assets over fy00 - fy08 and there are around 61 state entities in the pipeline ; v. providing more autonomy to public sector organizations, with effective leadership and management, to improve their operational and financial efficiencies accompanied by a program to strengthen their balance sheets which should allow them to graduate from budgetary allocations to seeking funding from the market ; and vi. raising private investment / gdp from 23 % to at least 28 % which involves significant tapping additional resources both from domestic and international financial markets. although this is an ambitious macroeconomic framework, but launching and adhering to it is attainable and critical. to position itself, pakistan plans to further enhance its policy framework and tap its economic potential by mobilizing additional foreign capital that is likely to be attracted as the country offers lucrative investment opportunities across all sectors. deepening of liberal incentive and investment regime will help economic sustainability broad based deregulation and liberalization of investment and pricing regime, pakistan attracted cumulatively $ 13. 5 billion investment across all strategic sectors. this has been facilitated by