has increased china ’ s and the people ’ s bank ’ s role in the global financial system. great reserves build - up, smooth sailing during the global recession page 5 of 7 and sustained high growth are all hallmarks of his era. christine lagarde, the imf ’ s managing director, has commended dr. zhou ’ s role in, and i quote, “ successfully steering monetary policy while structural transformation was in full swing, contributing importantly to china ’ s sustained growth to become the second largest economy in the world. ” end quote. 11. dr. zhou is currently a member of the group of thirty ( g30 ) and chinese economists 50 forum, and also holds teaching responsibilities at tsinghua and other institutions. he has written several books and over one hundred academic articles on various aspects of financial and economic policy. some of his important articles, such as “ rebuilding the relationship between the enterprise and the bank ” and the “ social security : reform and policy recommendations ” touch upon development and inclusive growth. i would also strongly recommend his book “ marching toward an open economic system ” to the audience here, as it offers relevant insights about china ’ s successful journey in the age of globalization. 12. given dr. zhou ’ s extensive experience at the highest levels of central banking, as well as his intellectual and research output, i am sure that his unique perspective and insights will be of enormous relevance for developing economies like pakistan. 13. we are therefore delighted that dr. zhou xiaochuan has joined us today as we honor the memory of one of our country ’ s finest civil servants. i would page 6 of 7 like to thank dr. zhou, on behalf of this forum, for taking time out of his very busy schedule and speaking to us here today. 14. i would also like to thank all of you all for attending today ’ s lecture. in keeping with our past lectures, i hope this one will also challenge your beliefs, encourage you to think outside your comfort zone, and hopefully trigger a lively, thoughtful and constructive debate. 15. without further ado, let me now invite dr. zhou to share his thoughts with us. dr. zhou xiaochuan …! - - page 7 of 7

to microfinance ( mf ) providers to top and middle tier microfinance banks ( mfbs ) and microfinance institutions ( mfis ) for key investments in hr, it, product development, risk management systems, business plans and branchless banking development. the microfinance credit guarantee facility to link microfinance with financial markets for mobilization of wholesale commercial funding through partial guarantees. similarly, the financial innovation challenge fund ( ficf ) for grants to innovative projects and testing new markets to lower cost of delivery, enable systems and procedures to be more efficient and provide new ways of meeting the larger demand for financial services. and the improving access to financial services fund which is supporting today ’ s program. these are mostly supply side interventions aiming to increase financial services by removing bottlenecks and have raised financial inclusion to a certain extent. however, what has been missing is a demand side solution – a program to impart financial education and awareness to consumers. this recognises that the very low level of financial awareness and confidence of financially excluded groups remains a strong barrier to their access and use of financial services. in addition, there are risks involved in creating new opportunities for consumers if the consumers are not proficient at making financial decisions. therefore, going forward, sbp considers financial literacy as an integral part of the financial inclusion strategy. financial literacy has assumed greater importance in recent years for both developed and developing countries, therefore, best practices in this area are still evolving. however, synthesizing from the oecd ’ s high level principles for financial education, some best practices are : first, the financial education program must involve key players from the beginning. this may take a lot of time and effort due to slow decision making process but will ensure success of the program in the long - run. in particular, the consumers must be consulted to understand bis central bankers ’ speeches their preferences and identify appropriate curriculum and dissemination channels and tools. therefore, financial education surveys must be conducted to appropriately identify the needs and to set a baseline for program monitoring. this will also help identify teachable moments for low income groups that may typically occur around the receipt of money, the need for credit etc. second, it is better to implement and earn quick wins to generate positive energy such as starting from a pilot launch initially before going national to gain the buy - in of all the stakeholders. third, the program design should be flexible enough to enable diverse stakeholders to join - in and create synergies. this