ICCI hails concessional loan schemes

Says access to finance will help spur economic activity in country.

ISLAMABAD:

The Islamabad Chamber of Commerce and Industry has welcomed the launch of concessional re-finance scheme of Rs10 billion by the State Bank of Pakistan, meant for the revival of economic activity and facilitate the flow of fresh credit in flood-affected areas.

Under the scheme, a mark-up of 8% per annum will be charged from the farmers and Small & Medium Enterprises (SMEs) of affected areas by banks against their financing.

ICCI President Muzzamil Hussain Sabri also called upon the government to consider further reduction of the markup to 5% to facilitate farmers in flood affected areas.

“Recent floods have damaged microbusiness in 45 districts along with standing crops on about 2.4 acres,” said Sabri. “Though relief packages have given borrowers an opportunity to reschedule their non-performing loans, the government should consider waiving them off altogether, as these farmers and entrepreneurs are hard pressed for debt repayment,” he said.



Majority of Pakistan’s population lives in rural areas where the small to medium sized enterprises are playing a vital role in economic development. SMEs contribute 30% to GDP growth, 25% to exports and employ 78% of the non-agricultural labour force.

Sabri was of the view that the development of SMEs, especially in rural areas, would become a source of poverty reduction in Pakistan and the government should give top priority to the better growth of these enterprises.

He said government must also provide better micro finance facilities in rural areas.

Published in The Express Tribune, October 26^th, 2014.

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