these low - cost, efficient financial services being offered at convenient locations the quarterly volume of transactions has reached to 28 million totaling rs. 115 billion. the average size of these transactions is rs. 4, 000 which shows that technology is reaching out to the previously unbanked, marginalized segments of the society. the years ahead are expected to see continued expansion in the market – new players, innovative distribution channels, market segmentation, price reductions etc. moreover, a number of initiatives have been taken to promote access to finance in the smes, agriculture, and housing sectors that largely focus on creating an enabling environment by addressing regulatory barriers, market failures and industry bottlenecks, as well as to ensuring consumer protection. despite having in place internationally acclaimed regulations, innovative delivery channels, industry - wide market development initiatives, the growth in financial access leaves much to be desired. this partly explains why pakistan has one of the lowest financial penetration levels in the world with 56 % of the adult population totally excluded, and another 32 % informally served. here, i would like to recognize that part of the challenge may be lying on the demand side of the equation. therefore, initiatives such as the national financial literacy program ( nflp ) have been rolled out by the state bank along with stakeholders to address the lack of financial literacy. the program focuses on different themes such as savings, budgeting, debt management, investment, consumer protection and branchless banking to impart awareness and understanding of basic financial concepts to the low - income and unbanked population. in conclusion, it ’ s true that our economy is going through testing times ; but let me just assure you that pakistan holds enormous potential for economic growth. the state bank will keep on working with all stakeholders to ensure that the financial system is well positioned to meet the growing needs of the economy and for achieving our shared goals of economic growth and prosperity. this momentous occasion compels me to urge upon all employees of the state bank to continue to stride for transforming this prestigious institution into the best central bank of the region. let me conclude with these words of our quaid, and i quote “ let us on this day, humbly thank god for his bounty and pray that we might be able to prove that we are worthy of it. ” happy independence day! thank you pakistan paindabad bis central bankers ’ speeches

prevailing international prices without any duties or barriers if they believe that the domestic crop is short. government no longer imports petroleum and petroleum products but the task has been assigned to the private sector. nor are the fortnightly prices of local pol products determined by the ministry of petroleum but by the distributors themselves. subsidies on fertilizers have been removed and most of the production, marketing and imports or exports are carried out by the private sector. the prices of end products rise and fall according to the dynamics of supply and demand. trading corporation of pakistan does step in on occasions but its main task is to intervene in the market where shortages or excesses threaten orderly market conditions in essential commodities. the most successful experience of deregulation has taken place in the telecom sector. the monopoly of the state owned ptcl has been broken and new licences have been issued for local loops, long distance and international lines. cellular telephone segment has shown highly impressive growth during the last few years and two new international investors have purchased licences through open auction. the subscriber base in cellular phone has jumped from 3 million to 7 million in the last one year and it is expected by 2005 the number will cross 15 million - an unprecedented feat. 6. privatization : the government has made it clear that it is not in the business of running enterprises and it is, therefore, divesting its interests in state owned enterprises by selling them to strategic investors in the private sector. most of the banks, industrial companies, etc. have already been transferred to the private sector. the shares of some utilities and infrastructure companies have been floated through stock exchanges. but now is the turn to sell large ticket items such as ptcl, pso, power distribution and generation companies, integrated power utility such as kesc. the calendar for future privatization is quite crowded and it is expected that most of these companies will be off the books of the government by the end of year 2005. the efficiency gains, tax revenues accruing to the government instead of subsidizing their losses, improved customer service and expansion through new investment are some of the direct and indirect benefits to the economy from privatization. 7. trade liberalization : pakistan was known for its extremely high tariff rates that were used to raise government revenues and also to protect domestic industries. in the early 1990s the maximum tariff rate was more than 100 percent. these higher tariff walls, in fact, had highly pernicious effect as wide spread smuggling discouraged domestic production and promoted imported goods