Second meeting of IPS Working Group on Full Reserve Banking Model
Role of private banks in money creation discussed
Aiming to delve into potential stakeholder queries surrounding full reserve and debt-free banking model and its implementation, the second meeting of IPS’ Working Group on Full Reserve Banking Model in Pakistan was convened on March 9, 2024.
Chaired by Qanit Khalil, a chartered accountant and an economic analyst, the meeting was attended by Dr Tahir Hijazi, former vice chancellor, MY University, Dr Ghazala Ghalib, lecturer, Department of Shariah & Law, International Islamic University, Islamabad (IIUI), Abdul Rab, chartered accountant, Haris Abdullah, School of Economics, Quaid-i-Azam University (QAU), and IPS team members Arif Jamshed and Muhammad Wali Farooqi.
Khalil provided insights into the role of private banks in money creation within Pakistan’s existing banking framework.
His presentation was followed by a robust discussion on strategies to swiftly address Pakistan’s domestic debt leveraging the full reserve banking model. Moreover, the anticipated impact of the model on business funding accessibility post-implementation was also discussed at length.
The meeting underscored IPS’s commitment to foster informed dialogue on vital economic policies and initiatives. The insights gleaned from these deliberations are expected to have significant potential for reshaping Pakistan’s financial landscape going forward.
