KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the federal government and State Bank of Pakistan to ensure the provision of Export Refinance Scheme funds to diversified sectors particularly SME and Solar power sectors.
FPCCI President, Mian Nasser Hayat Maggo, on Saturday said 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.
Mian Nasser Hayat noted with concern that Commercial Banks continue to spend 90% of the funds– coming under export refinance schemes – to merely a few chosen business groups. “The whole exercise is biased and unfair. The same practice continued when it came to export refinance for solar plants and equipment,” he blamed.
“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 asked and urged the authorities to accommodate and encourage SMEs in export refinance schemes.
The central bank should instruct commercial banks to offer 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, he observed.
FPCCI president demanded that a fair, transparent, and equitable mechanism must be devised in consultation with the business, industry, and trade communities of Pakistan.
Mian Nasser Hayat also suggested setting up export warehouses at the borders to uplift trade with neighboring countries and bringing the agriculture and service sectors into the tax net. He also demanded enhancing the education and health budget for improving the human capital of the country.
