We are facing several domestic issues that limit our ability to fully attain our potential. Our financial institutions and businesses must become more competitive and innovative, regulators like SBP and SECP must actively facilitate financial markets, and the Government should step up its function of providing infrastructure for growth, most crucially to meet the Energy demand of productive sectors.
In this regard, financial integration has proved a double-edged sword: while it deepened funding reservoirs in good times, the increased interconnectedness also served to propagate shocks far more strongly than before, creating new vulnerabilities.