SBP keen on dialogue with businessmen

The State Bank of Pakistan (SBP) wants to increase dialogue with the business community and is committed to serving the unserved sectors like small and medium enterprises (SMEs) and women entrepreneurs, said SBP Governor Reza Baqir on Friday.

hat SBP was increasingly focusing on digital financial services and was bringing a system where payments would be done in seconds. He pointed out that interest rate had been reduced by 6% and the exchange rate was now moving in a two-way orderly fashion. Highlighting the steps taken by the central bank, Baqir said, in recent times, to facilitate the businesses affected by Covid19, the SBP slashed the interest rate.

"We have deferred around Rs650 billion worth of principal loan payments out of which 90% beneficiaries are small entrepreneurs (borrowers of microfinance banks)." He said SBP was giving due consideration to the LCCI demand about the Electronic Credit Information Bureau (eCIB) and was looking into it positively, adding that a policy on eCIB would be announced in a few days.

"To support businesses in markup payments, Rs200 billion worth of loans were restructured and under the PM Rozgar Finance Scheme Rs232 billion was given for the salaries of employees," Baqir said, adding that all the schemes provided a relief of more than Rs1 trillion. The SBP governor said businesses could avail themselves of the Temporary Economic Refinance Facility (TERF) till March 30, 2021. Under TERF, they can get a long-term loan for 10 years on 5% interest and businesses can use these loans for balancing, modernisation and replacement (BMR).

He said commercial banks had been given the target of increasing housing finance to 5% of the loan portfolio by December 2021. "This will help 20 to 30 allied sectors of housing." He pointed out that the facility of Roshan Digital Account was being provided to overseas Pakistanis through which accounts could be opened without going to the embassy and attestation of any document. Pakistanis having assets abroad could also avail themselves of the facility, he said, adding that all these achievements were the result of institutional reforms. The SBP governor said Pakistan Credit Guarantee Corporation was being set up through which banks would get 60% risk cover for loans given to SMEs.