and expertise. presence of bank of china in pakistan is also expected to benefit the banking sector through technology transfers and associated innovation in products and processes, human capital development and improved competition and efficiency in the financial services. further, increased diversity of foreign banks and access to external financial resources will facilitate in enhancing the resilience of our financial page 2 of 4 sector. the financial sector assets in pakistan as a percentage gdp are still low at 74. 3 percent. the presence of world top banks like boc will facilitate in exploiting this potential through enhancing the size of bank assets and the much needed access to credit. these growing banking relationships between pakistan and china are critical considering that the trade linkages have increased manifold. in fy17 alone, china - pakistan merchandise trade volume has increased to usd 12. 2 billion from a level of usd 7. 4 billion in fy13. with the china pakistan economic corridor ( cpec ) now taking shape in the form of completion of various projects, the trade and financial linkages between the two countries are set to increase exponentially in the near future. in this perspective, as the cpec continues to mature and more infrastructure projects are initiated, specialized economic zones are established, and trade starts to flow faster ; more and more economic and business opportunities will be created for the banking sector that can be capitalized with careful business strategies. the demand for fixed investment and infrastructure loans particularly relating to the cpec projects is expected to rise. banks with relevant expertise in long - term project financing and resources such as the bank of china would be the key player to meet this additional demand. i am confident that with growing cooperation the two countries would continue to grow with a sense of solidarity and mutual benefit. i understand that bank of china also provides services and products designed to meet the banking needs of small and medium enterprises ( smes ), across the various jurisdictions in which it operates. we, at state bank of pakistan, believe that the growth of smes is vital for country ’ s economic growth and provision of quality banking services and products in this area remains paramount. i hope that, we can learn from bank of china ’ s diverse experience in serving this particular segment. state bank of pakistan is already facilitating banks in this regard and is willing to support them further. page 3 of 4 ladies and gentlemen! the future prospects of china and pakistan ’ s economic cooperation are very bright ; more so in the wake of sustained improvement in pakistan ’ s gdp growth resulting in growing investor

risk management. for instance there is a basic rule since inception of banks which says “ do not put all your eggs in one basket ”. had this simple rule been followed, many institutions could have avoided huge losses. the challenges posed by the global financial crisis have impacted leaders of all major businesses. elevating corporate governance should not be confined to banks, but commercial concerns must also do the same. we all know the pace of globalization has accelerated, resulting in increased domestic and global economic integration. today we cannot just shrug off failures within a particular sector or sometimes even a single entity if it has global linkages. gone are the days when a financial or political crisis in one country could be contained to that country ; now there are several contagion effects at different levels. that is why emphasis on good corporate governance regimes cannot be underscored more as it creates an attractive investment climate necessary to maintain investors ’ confidence, resulting in positive impact on the share price and creating possibilities for raising low cost capital. it is imperative that we develop and implement good governance practices in order to provide impetus to economic growth. given globalization and the crisis we all face, let me highlight the traits of effective leadership that are universally applicable and that i have cited in earlier talks. leaders must be visionary to see the future trends, anticipate institutional bottlenecks, remain competitive and be able to adap rapidly to changes. they should be continuous learners, a necessity for enhancing leadership skills. leaders need also to take into account their corporate social responsibility so that profit seeking is balanced against the objective of social service and well being of society. leadership success requires strong conviction and belief. yet having humility and recognizing the need to reinvent and inspire their organization to adapt to new challenges remain an integral part of successful leaders. this is vital if businesses want to remain at the forefront of new innovations, critical for long term competitiveness. all these and more comprise the necessary characteristics for dynamic leaders that push the frontiers of excellence. such corporate leaders fuel the drive towards long - term growth and stability. i ’ ll conclude my thoughts with a small personal aspiration. twenty years from now, i would like to hear the story of how a pakistani corporation entered the global market, the challenges it faced and overcame, and became the first pakistani company to be bis central bankers ’ speeches consistently featured in the fortune global 500 list of companies. i look forward to being in an audience of thousands, listening to that story. that is my final challenge