KARACHI:Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday lauded the move of the State Bank of Pakistan (SBP) to support neglected sector of SME by providing collateral-free loans worth sixty billion for a period of three years.
Governor of the central bank Dr. Reza Baqir has accepted our longstanding demand to support the SME sector having 40 percent share in GDP, 25 percent share in exports, and providing jobs to millions, he said while talking to the business community. Hussain said that under the initiative SMEs will get the loan at nine percent interest which should be reduced to five percent while partner banks should be asked to get maximum profit of two percent so that the initiative can become successful.
The business leader said that the country lacks a proper system for SME lending, government lacks information about this critical sector and the majority of the SMEs prefer to remain undocumented which will deprive them of the benefit of the move. The government and central bank should plan to support SMEs which are not ready to become part of the documented economy, he demanded.
He said that government must strike a balance between income and expenses, salvage economy and masses from mafia and expand the tax net with the help of tough decisions. He said that Finance Minister Shaukat Tarin wants to reduce dependence on borrowing and work with the opposition as well as establishment therefore all the stakeholders should cooperate with him. Tarin also wants to expand PSDP and support weak segments of the society according to the vision of Prime Minister Imran Khan.