ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) urged the government to reduce mark-up to 5 percent in the concessional loan schemes, as it would help businessmen and farmers.
Welcoming the launch of concessional loans scheme of Rs 10 billion by the State Bank of Pakistan at 8 percent mark-up rate for small and medium enterprises (SMEs) and farmers of flood affected areas, remain valid up to December 31, 2015, ICCI called upon the government to consider further reducing mark up to 5 percent that would help businessmen and farmers to revive business and agriculture activities in affected areas.
Muzzamil Hussain Sabri President ICCI said floods damaged large number of SMEs and micro businesses in 45 districts along with standing crops on an area of around 2.4 million acres and it was the need of the hour government should have announced a relief package to enable the affected entrepreneurs and farmers to stand on their feet. Though a relief package has also provided an opportunity to existing borrowers to reschedule and restructure their non-performing loans, he stressed government should consider waiving off all non-performing loans of businessmen and farmers in the flood-hit areas.
Sabri said SMEs were playing a vital role in the economic development of Pakistan as they were contributing 30 percent to Gross Domestic Products growth, 25 percent to exports and employ 78 percent of the non-agricultural labour force.
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 Pakistan.
