KARACHI – Mian Nasser Hyatt Maggo, President FPCCI, 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. The same practice has continued when it came to export refinance for solar plants and equipment.
Mian Nasser Hyatt Maggo has said that if this unfair practice continues, how Small and Medium Enterprises (SMEs) will be able to remain in business and survive in these times of depressive pandemic-induced economic slowdown.
Mian Nasser Hyatt Maggo noted that economic logic warrants more support to SMEs and new businesses rather than well-established business groups. This is even more critical with clean energy sources like solar; as Pakistan desperately needs more businesses to chip in.
FPCCI maintains that the federal government and State Bank of Pakistan (SBP) should accommodate and encourage SMEs in export refinance schemes. Additionally, SBP should instruct commercial banks to provide funds to diversified sectors under the schemes; instead of a few selected sectors. Pakistan needs broadening of the base in its exports and the government and SBP has a role to play.SBP must regulate the commercial banks effectively to eradicate favoritism and unfair practices.
FPCCI has demanded that a fair, transparent, and equitable mechanism must be devised in consultation with the business, industry, and trade communities of Pakistan – of which FPCCI is the apex representative body.
