Daily Times

The Ferozepur Road Industrial Association (FRIA) has asked the government to announce soft financing with very low interest rate and without any collateral for SMEs. The FRIA Chairman Shahbaz Aslam, in a meeting of industry representatives, stated that the constant increase in power tariffs on the pretext of fuel adjustment had increased electricity prices and added to the already high cost of trade and industry. Seeking comparable energy tariffs for domestic industries in order to capture the global market, he stated that due to high electricity rates, power theft became rampant as the tariff was unaffordable to consumers. The meeting forwarded several recommendations so that the small industry could deal with the challenges posed by the present economic crisis, saying mere statements would not work unless solid measures are taken by the government, including a sizable reduction in fuel prices, bringing down key policy rate to single digit, regionally competitive energy rates and substantial cut in duties and taxes. Shahbaz Aslam said that it is unfortunate that the State Bank has several times introduced a financing scheme for Small and Medium Enterprises, enabling them to get loans without collateral but it was never implemented in its true spirit. The scheme was launched to improve the SMEs’ access to finances in collaboration with the government and aimed at enabling businesses that cannot offer security or collateral to access bank finance. The FRIA Chairman urged the central bank to announce a soft loan with a minimum markup rate, especially for SMEs to bail out their struggling businesses. He called for significant cuts in import duties and waiver of sales tax, income tax, and additional income taxes, which are still being charged in this time of grave crisis. Shahbaz Aslam asked the government to take concrete steps to keep the industrial wheels running especially for SMEs, to save the livelihood of millions of workers associated with the small industries.