Move to divert bank loans towards private sector, Backdoor investment be discouraged
Karachi (Pakistan Point News - 23th November, 2020) Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday lauded the decision of the government to ban investment by institutions in the national saving schemes (NSS).
The move will divert bank loans towards the private sector which will boost the economic activity and GDP provided if all venues for secretive investments by institutions in NSS are discouraged in an effective way, he said.
Mian Zahid Hussain said that banks have always remained interested in lending to the government and NSS to get more profit. Banks would give negative returns to account holders and grab a bigger pie by investing in NSS which has been stopped which will improve the economic situation.
Talking to the business community, the veteran business leader said that inflation has taken a toll on the masses and business community while pensioners are facing unprecedented problems which should be considered.
The low rate of return discourages the tendency of savings in the masses which results in many problems for the government and inflation must be brought down for a change in the perception of masses, he demanded.
He said that reforms in the property market and other sectors as well as ensuring transparency will trigger investment in these sectors.
Presently the industrial sector, exports and construction sectors are showing encouraging signs while the recent ban will bring more improvement in the overall economic situation, he said.
