inflation. there is still great uncertainty about oil prices. if they start receding from the peak levels this will have a favourable effect on the general price level and help in moderating inflationary expectations in the coming months. the other challenge is the management of balance of payments situation. as imports of machinery and equipment along with the higher oil bill have pushed the level of imports, trade deficit has widened. so far, increased flow of workers ’ remittances, foreign direct investment and other concessional flows have been able to finance this deficit but, in the long run, widening of our export base, penetration in new markets and increasing the productivity of textile exports are the only safe ways to minimize trade imbalances. pakistan ’ s tax - gdp ratio has remained stagnant at low levels and the tax net is limited to 1. 1 million tax payers of which 0. 45 million are salaried workers. thus, the dependence on regressive indirect taxes has created a disproportionately high burden on the middle and lower income groups. tax reforms underway should aim to increase the buoyancy and elasticity of the tax system. the biggest problem that has retarded equitable growth in pakistan has been low investment in human development, particularly the female education. more recently the active participation of private and non - governmental sector has given rise to some hope that quality of education will improve. but the critical question of access to education by the poor quintiles still has not been satisfactorily addressed. government has the responsibility to finance the poor households ’ education and health needs but it can provide these services through other providers rather than itself. as the economy moves on the path of 7 to 8 percent sustained growth over the next decade, the shortages, congestion and inadequacy of physical infrastructure will become quite apparent. under the given fiscal envelope the public sector development program can only finance one half of the annual requirements. the other half has to come through the private sector or privatepublic partnership. for the latter, we have to work out contractual arrangements whereby the end users can easily afford to pay the cost of these services. finally and the most important bottleneck, in my view, is the way of rapid economic growth and poverty reduction will be the lack of capacity of civil service, police and judiciary to function as effective institutions in implementing the policies and programs, treating the citizens equitably and with respect and redressing their grievances

muhammad bin ibrahim : raising awareness of financial knowledge in malaysia welcoming remarks by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at karnival kewangan 2017, kuala lumpur, 13 january 2017. * * * it is my honour to be here this morning for the opening ceremony of the inaugural finance carnival. the carnival is an initiative formed through the collaboration of various ministries, agencies and financial institutions. it aspires to raise the level of public awareness in three important areas : financial services ; knowledge of financial management ; and consumer protection. i would like to extend my appreciation to yang berhormat datuk johari bin abdul ghani, second finance minister, who has graciously agreed to join us today in officiating the carnival. finance has the power to transform lives the pursuit of financial knowledge is a key economic imperative. it also has the ability to transform lives. in today ’ s world, the ability and knowledge to save, invest and borrow are essential life skills, be it for individuals or businesses. for businesses, including small enterprises, financial knowledge is particularly important in generating income and to secure financing. various efforts have been undertaken to improve financial inclusion in malaysia. the results so far are promising. currently, the majority of malaysians ( over 90 percent ) have access to formal financial services. 92 % of adults have a savings account, while 98 % of users have performing financing accounts. based on a survey that was conducted, consumer satisfaction towards financial services increased significantly from 61 % in 2011 to 73 % in 2015. we will continue to invest efforts towards improving the performances in this area. with loans amounting to rm1. 5 trillion as at end - november 2016, the banking industry is the main source of funds to households and businesses, including small and medium enterprises ( smes ). recognising the pivotal role of the banking sector in our economy, bank negara malaysia will continue to develop the financial sector in a progressive and inclusive manner to ensure that all segments of society can benefit from this financing ecosystem. financial knowledge among businesses and individuals must be continuously improved while results are promising, our efforts in achieving financial inclusion need to be further intensified. there remain gaps in access to financing for certain segments of society, which require collective efforts from all. the bank is receptive towards these needs and remain committed to assist the public at all times. among the issues raised by businesses are the difficulties in obtaining funding to start