ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has appreciated the decision of the State Bank of Pakistan to grant Rs 10 billion to the farmers who were affected by floods. The loans will be given on 8 percent markup. However, the ICCI has urged the SBP to reduce the markup from 8 to 5 percent to facilitate the farmers.
Muzzamil Hussain Sabri, the ICCI president said that the recent floods had badly damaged a large number of SMEs and microbusinesses in 45 districts of the country while standing crops on an area of around 2.4 million acres were also damaged. He added that it was the need of the hour to announce a relief package for the entrepreneurs and farmers.
He said though the relief package has also provided an opportunity to the existing borrowers to reschedule and restructure their non-performing loans, but stressed that government should seriously consider waiving off all non-performing loans of the businessmen and farmers in the flood-hit areas.
He said that majority of Pakistan’s population lives in rural areas while the small to medium sized enterprises are playing a vital role in the economic development of Pakistan as they contribute 30 percent to GDP growth, 25 percent to exports and employ 78 percent of the non-agricultural labour force. Therefore, he emphasised that government should ensure best possible facilities for SMEs in terms of business environment, finance, infrastructure, regular supply of raw material and energy etc.
Sabri was of the view that the development of SMEs, especially in rural areas would become a source of poverty reduction in Pakistan and government should give top priority to facilitate the better growth of these enterprises in order to cope with the rising challenges of poverty and unemployment. He said government should focus on providing better microfinance facilities in rural areas as availability of easy credit would go a long way in facilitating the fast growth of economic activities in rural
