Global risk aversion triggered by the European debt crisis caused a large correction and rapid outflows from Indian equity, and more recently debt markets as was evident in the aftermath of taper talk in 2013. When international investors seek safe havens, the exchange rate markets are the next market to be impacted.
According to a recent CGAP publication, “Pakistan serves as an example of how public and private institutions together can move a country towards a digital financially inclusive system”. The report further notes that “Government and public actors have created the enabling environment and provided seed funding, while private actors are developing the infrastructure, services and a long-term business case”.