ISLAMABAD: 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 will discuss the issue with the communications minister to finalise the details.
During a recent cabinet meeting, a cabinet member emphasised the importance of delving more into the wider topic of whether the government should be involved in economic endeavours.
Tarin said that PPOD has expanded its national reach to include 14,000 branches across the United States.
Even when compared to regional nations, the national savings rate was very low since scheduled banks only served 33% of the population. The launch of banking services by PPOD might assist improve the national savings rate, according to Tarin, because of its broad reach.
While proposing that the proposed Rules of Business modifications be approved, the finance minister advised that PPOD form joint ventures with existing banks, the details of which he would negotiate with the minister of communications.