President, Islamabad Chamber of Commerce & Industry Ahmed Hassan Moughal has said that banking sector should give soft loans to small and medium enterprises(SMEs)
Islamabad (Pakistan Point News / Online - 20th March, 2019) President, Islamabad Chamber of Commerce & Industry Ahmed Hassan Moughal has said that banking sector should give soft loans to small and medium enterprises(SMEs) .He said this after inaugurating a new branch of a bank here on Wednesday.He said that despite the fact that SMEs are playing key role in the economic development of the country, they are facing great problems in obtaining loans from banks in Pakistan due to tough collateral conditions and could not grow up to their real potential.
Through easy credit facility to SMEs ,their businesses could grow fast and play more effective role in the economic development of Pakistan.The ICCI Chief said that around 3.2 million SMEs are operating in Pakistan providing jobs to 78 percent non-agricultural labor force, contributing 30 percent to GDP and making 25 percent share to total exports.He said that due to lack of access to finance, they were facing difficulties in expansion and growth.
He said that banks should launch preferential easy credit schemes for SMEs that would help these businesses to achieve rapid growth, create more jobs, improve exports and enhance tax revenue of the country.ICCI President said that SBP had launched a financing policy for SMEs in 2017 that aimed to increase private sector credit from current 8 percent to 17 percent and increase number of credit availing businesses from current less than 164000 to over half a million by 2020.
However, this policy could not make good progress so far as tough collateral conditions of banks for SMEs were the main hurdle for crowding in private sector for credit. He emphasized that banks should revise current credit policy for SMEs and make it more attractive for them so that maximum SMEs could avail easy credit for expansion and growth and put Pakistan on the path of sustainable economic development.
