SAARCFINANCE – FUNCTIONS AND OBJECTIVES

BRIEF HISTORY
The SAARCFINANCE was established in 1998 as a regional network of the SAARC Central Bank Governors and Finance Secretaries. Its meetings take place twice a year, concurrently with the IMF/World Bank Annual and Spring meetings. The Network has held twenty two meetings since its inception in 1998, following the 10th SAARC Summit held in Colombo. Seventeen of such meetings were held in Washington D.C. and one each in Prague (the Czech Republic), Dubai (United Arab Emirates), Singapore, Dhaka (Bangladesh), and Istanbul (Turkey).

OBJECTIVES
The primary function of the Network is to conduct a dialogue on macro-economic policies of the region and share experiences and ideas of the member countries. The Terms of Reference of the SAARCFINANCE were approved at the 11th SAARC Summit held in Kathmandu in January 2002. The Summit also accorded approval to the SAARCFINANCE as a formal SAARC body.

ORGANIZATIONAL SET-UP
The SAARCFINANCE Chair moves in rotation with the change of the SAARC Chair. Dr. Ishrat Husain, the then Governor, State Bank of Pakistan served as the 3rd Chairman of the Network during April 2004 – September 2005. The SAARCFINANCE Chair moved to Bhutan from Sri Lanka during 21st meeting of the Network held in Washington on 25th April 2010.

COORDINATORS
Member Central Banks also get represented by their respective SAARCFINANCE Coordinators. They meet twice a year to facilitate the working of the Network. Thirteen meetings of Coordinators have taken place so far. Mr. Ayub-ul-Hasan, Additional Director, Research Department, SBP is the current SAARCFINANCE Coordinator for Pakistan.
As per decision taken by 7th & 8th SAARCFINANCE meetings, five member countries have also nominated Network’s Coordinators from their respective Ministry of Finance.

SECRETARIAT
The Network has a rotating Secretariat, which gets shifted to the Central Bank of the country that holds its Chairmanship. The object of the Secretariat is to assist the Chairman in discharging his duties effectively. Economic Policy Department, State Bank of Pakistan, which took charge of the Network’s Secretariat in April 2004, performed this duty till its shifting to Bangladesh Bank in September 2005. Currently, the Secretariat of the Network has been moved to Royal Monetary Authority of Bhutan, effective April 2010.

INFORMATION SHARING
Sharing of information among the SAARCFINANCE institutions - one of the major objectives of the Network - has progressed satisfactorily. In this regard, a large number of publications and other documents on various policy issues were exchanged among the member institutions.

SEMINARS/SYMPOSIUMS/WORKSHOPS/STUDIES, ETC.
Seminars/Symposiums/Workshops/Studies were also conducted, on topical issues, by a number of member countries. State Bank of Pakistan has conducted six seminars besides undertaking a Study on “Financial Sector Assessment”. The following table provides details of the Seminars organized by State Bank of Pakistan, under the aegis of SAARCFINANCE.

SEMINARS, ORGANIZED BY STATE BANK OF PAKISTAN

STAFF EXCHANGE PROGRAM
An important segment of the functions of SAARCFINANCE relates with its Staff Exchange Program. The matters of the Staff Exchange covered a broad range of issues. Since inception of the Network, 340 officers visited various institutions of member countries under SAARCFINANCE Staff Exchange Program. Pakistan provided hospitalities to 39 officers (4 from Bangladesh, 2 from India, 7 from Nepal and 26 from Sri Lanka) while 4 officers from State Bank of Pakistan made outside visits (2 each to Central Bank of Sri Lanka and Reserve Bank of India) under the said Program.

Following table gives country/institution-wise position in respect of the activities under Staff Exchange Program:

PROFILE OF STAFF EXCHANGE PROGRAM*