ISLAMABAD : May 3, 2023: A SAARCFINANCE Governors’ Group Meeting was held on May 2, 2023 in Islamabad. Two SAARC member countries India and Bangladesh did npt turn up for the meeting. A handout issued by State Bank of Pakistan of the event did not mention the reasons as to why India and Bangladesh stayed back for not attending the event.
The handout said Mr. Jameel Ahmad, Governor State Bank of Pakistan chaired the meeting. He welcomed the Governors of SAARC central banks and other delegates to this Regional meeting of SAARCFINANCE. He specifically extended his gratitude to Mr. Maha Prasad Adhikari, Governor of Nepal Rastra Bank; Dr. P. Nandalal Weerasinghe, Governor of Central Bank of Sri Lanka; and delegates from other central banks of the region for their presence in person.
In his opening remarks, Governor Jameel Ahmad noted that the SAARC region has confronted with
multiple challenges and facing difficult times in terms of a very high inflation, slow growth, pressure on
fiscal and external balances, climate changes, and increased incidence of poverty. In this situation, the
SAARCFINANCE forum provides an opportunity to learn from each other’s experiences on relevant
macroeconomic policies and the need to fortify regional cooperation in the face of a challenging
environment.
After opening remarks by Governor SBP, the central banks’ Governors took stock of the macroeconomic
situation in the region, progress on different initiatives under the SAARCFINANCE forum, including
database, financial inclusion, collaborative studies and capacity building.
Alongside the Governors’ meeting, a session was arranged on SAARCFINANCE collaborative research
studies completed during the year. In the session, SBP presented a study on the use of unconventional
policy instruments by South Asian central banks, and another study was presented by Nepal Rastra
Bank on the prospects of Central Bank Digital Currency (CBDC) in the SAARC region.
On the sidelines, SBP also organized the flagship, Zahid Husain Memorial Lecture, where Dr. Asim Ejaz
Khwaja, from Harvard Kennedy School delivered a lecture on Democratizing Lending: The Challenges
and Opportunities for Financial Inclusion in Emerging Economies.
The State Bank of Pakistan also hosted the SAARCFINANCE Governors’ Symposium on the theme of
“Climate Change and Green Financing: Initiatives & Outlook in South Asia” on May 3, 2023 to showcase
its dedication to promoting a sustainable financial system. The Symposium comprised of three
insightful sessions; an expert session led by IFC and ADB; country presentations by member central
banks; and a panel discussion on “The Role of Financial Sector in Advancing Climate Change Agenda
and Green Financing in SAARC Countries”. The distinguished panelists included Mr. Yaseen Anwar – Ex-Governor, SBP & Senior Policy Advisor, IFC; Mr. Abdul Rehman Warraich, Commissioner, SECP; Mr.
Virender Kumar Duggal from ADB; and Mrs. Dilrukshini, from Central Bank of Sri Lanka. The panelists
shared their perspectives on the role of financial institutions in promoting sustainable finance and the
ways in which green financing can be leveraged to advance climate change action in the region.
In his inaugural note, the Governor-SBP emphasized on the importance of discussing the pressing issue
of climate change in general and particularly with reference to the SAARC region. The Governor
highlighted the vulnerabilities of SAARC region to the adverse impacts of climate change and its
implications on the financial system. He further remarked that globally, the financial systems are
shifting towards promoting sustainability considerations. Similarly, SBP has adopted a proactive
approach to safeguard the financial sector against climate change and environmental risks by
undertaking several green initiatives including green banking guidelines, environmental & social risk
management (ESRM) implementation manual, and financing scheme for renewable energy.
The Symposium concluded with closing remarks by Ms. Sima Kamil, Deputy Governor SBP, expressing
her gratitude to all the participants for their valuable contributions to the discussions. The event was a
significant step towards fostering greater collaboration and cooperation among SAARC member
countries and international organizations to address the pressing issue of climate chang