state, and i don ’ t think that i need to highlight the scope of the problem here. similarly, i think the effect on the economy of an energy shortage should be fairly straightforward : energy is one of the key inputs in any value - added production process. less energy availability will translate into lower output. the solutions to the energy problem will take time – unfortunately, there is no magic pill here. we will need to invest in infrastructure for hydro - electricity, natural gas transportation and transmission, and more efficient power plants. moreover, we will need to move to greater private sector participation in the energy sector. that means there will, once again, be a need for less, but more effective regulation – one that safeguards the rights of both producers and consumers, while ensuring adequate incentives for the exploitation of our natural resources the most important incentive here will be prices. unfortunately, a large part of our energy problems today can be traced to a mispricing of fuels. under - pricing any commodity will always lead to a shortage – that ’ s one of the fundamental axioms of economics. letting the market decide the price is one way of ensuring that future shortages are averted. but remember that markets do not have morals – and that ’ s why we will need regulation to make sure that those markets serve and protect the interests of all stakeholders. at this point, i would also like to touch very briefly upon the state bank ’ s efforts to accelerate economic growth. as you may know, any central bank ’ s primary policy tool is the discount rate – the basic interest rate which acts as an anchor for all other rates in the economy. unlike most central banks, and similar to the us federal reserve, the state bank has a dual mandate : it must tackle the issue of maintaining price stability, i. e. inflation, while also keeping an eye on economic growth. the preamble to the sbp act of 1956 defines that the institution has “ to regulate the monetary and credit system of pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller bis central bankers ’ speeches utilization of the country ’ s productive resources ”. so at the state bank, we need to pay close attention to both monetary stability and fuller utilization of the country ’ s resources. that is a tough balance to strike in the best of times. the bank ’ s policy is to use any room available to cut interest rates in order to promote economic growth. after being in doubledig

##less banking providers achievements in the branchless banking services have already put pakistan at the global centre stage of financial inclusion and innovation. the world bank ’ s consultative group to assist the poor ( cgap ), in one of its studies has also recognized pakistan as one of the fastest growing branchless banking markets in the world, and a laboratory of innovation. we hope that with the entry of new players and scaling - up of the existing institutions the present growth momentum will build up strongly and progressively. before i close, i would like to emphasize on our broader goal i. e. to provide inclusive financial services to poor and low income groups. i firmly believe that microfinance and branchless banking are complementary to each other, and together they will bring the advantages of inclusiveness, convenience, ubiquity, and efficiency. pakistan offers best regulatory framework and industry infrastructure for microfinance, and i hope that our mfbs will take advantage of such a favorable market environment by investing in innovative technologies and products to grow their businesses and expand access to financial services in pakistan. once again, i would like to congratulate waseela microfinance bank limited and mobilink. i wish you every success, assure you of our support, and look forward to positive outcomes of this commercial launch and i hope today ’ s commercial launch of waseela and its branchless banking will go a long way in tackling financial exclusion in pakistan. thank you. bis central bankers ’ speeches