SBP urged to disburse funds to diverse sectors
It is a misconception that SBP will be empowered unabatedly through the proposed Act to share financial or non-financial private information with any entity, particularly outside the country, said the Ministry of Finance. PHOTO: FILE
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the central bank to ensure the provision of export refinance scheme funds to diversified sectors particularly the small-medium enterprises (SME) and solar power sectors.
In a statement issued on Saturday, FPCCI President Mian Nasser Hyaat Maggo stated that economic logic warrants more support to SMEs and new businesses rather than well-established business groups. He termed it even more critical with clean energy sources like solar as Pakistan desperately needs more businesses to chip in. FPCCI chief observed that commercial banks continue to disburse 90% of the funds - under the export refinance schemes - to only a few chosen business groups.
“The whole exercise is biased and unfair,” he claimed, adding that the same practice has continued when it comes to export refinance for solar plants and equipment. He urged the federal government and the State Bank of Pakistan (SBP) to accommodate and encourage SMEs in export refinance schemes.