'Covid-19 drastically undermined Pakistan's financial market performance'

FPCCI acknowledges reluctance of financial institutions to extend relief to masses

KARACHI:

The coronavirus outbreak has not only affected the trade and industry in Pakistan but has also drastically undermined the performance of the financial market and major economic indicators, said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Khurram Ijaz.

Chairing a webinar on the “Implications of Covid-19 on the Financial Market/Institutions of Pakistan”, Ijaz said measures taken by the State Bank of Pakistan (SBP) to mitigate the financial and economic impact of coronavirus were commendable, however, benefits of such measures should reach the grassroots level.

During the discussion, Pak Brunei Investment Group Head (SME) Arjumand Qazi said the central bank had extended maximum support to the trade and industry in terms of designing and announcing effective financing schemes since April 2020.

“However, commercial banks and other financial institutions are still reluctant to extend such facilities to rural businesses.”

Finance expert Khurram Shehzad appreciated the SBP’s measure to slash the interest rate from 13% to almost 7% over the past six months.

“It is high time that commercial banks, investment companies, and other stakeholders of the financial market play their part in the economic and financial survival of the country.” He said.

Expressing his views, Dubai Islamic Bank Head of Corporate and Investment Banking Zubair Haider Sheikh said as the country was moving back to normal activities amid the ease in lockdown, commercial banks must come forward to extend the Temporary Economic Refinance Facility (TERF) as well as the long-term financing schemes to the masses.

Arif Habib Limited MD Ahsan Mehanti, while appreciating the SBP’s initiatives to mitigate the financial losses borne by businesses during the lockdown, said there was still a need for incentive-driven policies to support the corporate sector.

Published in The Express Tribune, August 25^th, 2020.

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