1  STATE BANK OF PAKISTAN  Ladies and Gentlemen, The relevance of the topic for Pakistan is high, as it is an emerging economy with a large population. When we observe the evolving global economy, it is evident that emerging markets face a unique set of challenges, but if managed well, the results have far reaching implications for growth.
However, economic developments do not occur in a vacuum; in fact, they often precipitate a host of new considerations, such as income inequality, social security, environmental concerns, and so on. Moreover, for any progress to be truly sustainable, the need for macroeconomic stability in general – and financial stability in particular – is a matter of paramount significance.