Finance Minister Shaukat Tarin has backed a plan of starting banking services by Pakistan Post Office Department (PPOD) and suggested that it should enter into joint ventures with established banks.
Tarin told the cabinet that he would discuss the matter with the minister for communications to finalise modalities in this regard.
During discussion in a recent meeting, a cabinet member highlighted the need to delve on the larger question as to whether the government should be involved in running commercial ventures.
Tarin pointed out that PPOD had an expanded national outreach with 14,000 branches across the country.
Since scheduled banks catered to only 33% of the population, the national savings rate was considerably low even when compared with regional countries. With its nationwide outreach, Tarin said, the start of banking services by PPOD could help raise the national savings rate.
While recommending approval of proposed amendments to the Rules of Business, the finance minister suggested that PPOD should enter into joint ventures with established banks, the modalities of which he would discuss with the minister for communications.
