SCCI complains to SBP about lack of loans to KP

PESHAWAR: The Sarhad Chamber of Commerce and Industry (SCCI) has asked the State Bank of Pakistan (SBP) to direct the commercial banks to exclude Khyber Pakhtunkhwa (KP) from ‘Red Zone’ and extend loans to businessmen in the province.

The SCCI) President Sherbaz Bilour made the demand as he met SBP Deputy Governor Sima Kamil in Karachi. Other officials of the SBP were present at well at the meeting, according to a press release issued here on Wednesday.

The SCCI chief informed the SBP deputy governor that the commercial banks have declared KP ‘Red Zone’. He complained of a lack of facilitation and provision of loans to the business community in KP. Sherbaz Bilour said the businesses and industrial growth had been affected in Khyber Pakhtunkhwa due to the prolonged war against terrorism, fought in this region.

He said now the situation has deteriorated in KP after the outbreak of the coronavirus pandemic which has hit other parts of the world as well. The SCCI said the attitude of the commercial banks was unfriendly with the business community despite the present circumstances, which is highly deplorable.

He demanded the government to announce special incentive and interest-free loans for the unprivileged KP to give a boost to Covid-19-hit businesses and industries in the province.

Sherbaz Bilour suggested the establishment of risk management units of the commercial banks in Khyber Pakhtunkhwa. He urged the SBP to retain the present policy rate while keeping in view the unfavourable economic condition and businesses in wake of the second wave of Covid-19.

Praising the SBP for introducing a cashless system, he hoped that the initiative could be helpful to bring improvement and transparency in the banking system. Sherbaz Bilour appreciated the government for introducing business-friendly policies, i.e electric wheeling charges policy, reduction in tax rate special incentive for the construction industry, saying that the government step could benefit allied industries of the construction sector.

The SCCI chief urged for including the allied sectors in the fiscal relief package announced for the construction industry. He proposed joint SCCI-SBP joint efforts for creating a favourable environment for the business and industrial growth as well as attracting new investment in the province.

The SBP deputy governor agreed to recommendations made by of the SCCI president and said that SBP had introduced a number of schemes for ease of doing business, especially incentive and relief to covid-19 affected businesses and industries.

Sima Kamil said the government was taking proactive steps for uplift of the agriculture sector. She promised to take practical steps to resolve the underprivileged KP business community issues on a priority basis.