KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the central bank to ensure provision of Export Refinance Scheme funds to diversified sectors particularly SME and Solar power sectors.
In a statement on Saturday, FPCCI President Mian Nasser Hayat Maggo maintained that economic logic warrants more support to Small and Medium Enterprises (SMEs) and new businesses rather than well-established business groups. He termed it even more critical with clean energy sources like solar; as Pakistan desperately needs more businesses to chip in.
The FPCCI president has noted with concern that Commercial Banks continue to disburse 90% of the funds– coming under export refinance schemes – to only a few chosen business groups. The whole exercise is biased and unfair, he blamed adding that same practice has continued when it came to export refinance for solar plants and equipment. “If this unfair practice continues, how (SMEs) will be able to remain in business and survive in these times of depressive pandemic-induced economic slowdown,” he questioned and urged the federal government and State Bank of Pakistan to accommodate and encourage SMEs in export refinance schemes. Additionally, the SBP should instruct commercial banks to provide funds to diversified sectors under the schemes; instead of a few selected sectors, as Pakistan needs broadening of the base in its exports and the government and SBP has a role to play, Mian Nasser Hayat observed and demanded the central bank to regulate the commercial banks effectively doe eradicating favoritism and unfair practices. The FPCCI has demanded that a fair, transparent, and equitable mechanism must be devised in consultation with the business, industry, and trade communities of Pakistan.