PESHAWAR: Keeping changes in business conditions in Khyber Pakhtunkhwa, State Bank of Pakistan (SBP) Governor Ashraf Mahmood Wathra has asked the banks to speed up the pace of its credit expansion and other trade facilitation activities in the province.
“Our banking industry has been playing its role for increasing economic activity not only through channelising funds but through other banking services,” the SBP governor said, adding that however, further improvement will also be brought in the quality of services and products.
He stated this while addressing a discussion session on credit expansion in Khyber Pakhtunkhwa with the representatives of Khyber Pakhtunkhwa Chambers of Commerce and Industry (KPCC), business community, Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and presidents of banks.
Ashraf Wathra pointed out that the unfavourable security situation in Khyber Pakhtunkhwa province adversely affected the overall economic environment during the last decade. He shown optimism to grow ratio of public access to financial services, as the overall law and order situations in Khyber Pakhtunkhwa is getting improved compared to the last three years.
The governor said ratio of lending by commercial banks still below of 2 per cent against the deposit rate of 7.4 per cent from the province, which could be improved, keeping in view the improvement in security situation in the region.
Wathra explained that KP which is 8.5 per cent of the entire country, wherein a total of 10.25 per cent existed branches of commercial banks, out of which 36 per cent only functional in rural areas of the province.
He also said that the percentage is higher than other provinces, whereas nearly 30,000 banking branchless agents were providing financial facilities to public, to those which didn’t access to banking accounts.
Speaking on the occasion, KPCCI President Zulfiqar Ali Khan appraised the forum about the difficulties being faced by the business community in KP, while other representatives of business community also shared the challenges faced by them.
FPCCI President Abdul Rauf Alam pointed out that potential opportunities are there after lifting of the UN sanctions on neighbouring Iran.
