Inaugural meeting of IPS’ Working Group on Full Reserve Banking

IPS’ Working Group proposes Full Reserve Banking to address Pakistan’s economic challenges

The inaugural meeting of newly formed IPS’ working group on Full Reserve Banking, convened at IPS on February 20 and 24, 2024 in two sittings, addressed Pakistan’s economic hurdles, particularly focusing on internal debt and interest payments, underscoring the potential of full reserve banking as a solution to alleviate Pakistan’s economic woes.

Chaired by Qanit Khalilullah , a chartered accountant and renowned economist, the meeting was participated by a diverse array of participants including Dr Anwar Shah from School of Economics, Quaid-i-Azam University, Dr Ghazala Ghalib from International Islamic University Islamabad (IIUI), Dr Tahir Hijazi, former vice chancellor, MY University, Muzammil Azeem, assistant director, State Bank of Pakistan, Haris Abdullah from the School of Economics, Quaid-i-Azam University, Jamal Anees, Helping Hand, Ali Salman, founder and executive director, PRIME, Dr Mudeer Khattak, assistant professor, Iqra University, Islamabad, Shoaib Ahmad, assistant manager, Central Power Purchasing Agency (Guarantee) Limited, Uzair Abdul Saboor, manager, APRSP, Dr Khalid Abbasi, assistant professor, Bahria University, Islamabad, Abdullah Adnan, senior research fellow, IPS, Muhammad Wali Farooqi, research officer, IPS, Najib Ullah Yousafzai, a PhD student from the School of Economics, Quaid-i-Azam University,  Saarim Ghazi, head, Sharia Compliance, Silk Bank, Muhammad Umair, Jamal Bashir, Sohaib Khalil, Syed Umer Amaduddin  and Waleed Abdullah Abbasi.

Khalilullah emphasized that many of Pakistan’s economic challenges are self-inflicted and can be mitigated with strategic interventions. He pinpointed internal debt and its associated interest payments as a core issue plaguing the economy. Khalilullah elaborated on the proposed solution, asserting that full reserve banking could effectively eliminate Pakistan’s internal debt burden, both presently and in the future.

Following Khalilullah’s presentations and discussions, participants engaged in a Q&A session to delve deeper into the intricacies of full reserve banking.

IPS, in the end, affirmed its commitment to support and collaborate on initiatives related to this proposed economic strategy.