TP Report
PESHAWAR: Sarhad Chamber of Commerce and Industry urged government and State Bank of Pakistan to increase in share of Small and Medium Enterprises (SMEs) Financing upto 20 percent, expansion of credit guarantee schemes through EXIM Bank.
SCCI also called for establishment of KP Industrial and Youth Empowerment Fund under State Bank of Pakistan and Special Investment Facilitation Council, besides gradual reduction in policy rate from 11.5 to 6 percent.
The chamber urged the central bank to issue a directive to increase lending ratio to boost small and large scale businesses and industry in K-P.
These demands were made by SCCI President Junaid Altaf during opening remarks at an awareness session on Islamic Banking organised by the chamber in collaboration with State Bank of Pakistan Peshawar here on Wednesday.
The Islamic Banking Awareness Session aimed at to enhance members’ understanding of Shariah-compliant banking and financing solutions. Both sides have announced to form a focus group, with representation of chamber, officials from SBP and Commercial banks, which would take initiatives to resolve specified issues.
Apart from the SCCI senior vice president Muhammad Nadeem, member of the chamber’s executive committee Ziaul Haq Sarhadi, TDAP Director Nauman Bashir, WCCIP President Qurtual Ain, and Ihsanullah, Rashid Iqbal Siddiqui, Hamoodur Rehman, Ishtiaq Paracha, Faiz Rasool, Fazal e Wahid, SCCI Secretary General Muqtasid Ahsan, senior officials and representatives of various commercial banks, members of business community were present in a large number during the session.
The session was also attended by acting Chief Manager SBP Peshawar Shehryar, SBP Deputy Manager Peshawar Naimatullah Khan and senior officials and others.
The session encouraged meaningful dialogue, with participants showing great enthusiasm and asking thought-provoking questions that enriched the overall learning experience.
Dr Mufti Asad provided insight into the value of Islamic Banking in the country, while emphasizing the importance of Halal and Shariah compliant banking solutions.
He stated that Islamic Banking continues to emerge as a pivotal force in shaping Pakistan’s economic landscape.
Senior official Naimatullah also addressed the session and apprised the SBP initiatives and efforts to promote Islamic Banking and directives to commercial banks being a key regulator to commercial banks to facilitate the business community.
According to rough estimates, Islamic Banking Assets would touch $9.7trillion by 2029, President Junaid Altaf said, adding that today Islamic Banking exists in more than 140 countries whereas the Sukuk (Islamic investment certificates) also crossed $ 1 trillion.
The progress, he continued, was made in Pakistan as well, Islamic Banking Deposits had crossed Rs9.5trillion, which is 25 percent of the total deposits whereas the financing share is over 30 percent.
He, however, emphasized that merely transfer isn’t achievement but real progress inclusion, especially SMEs and regional economy.
Today, I want to highlight an important issue that overall access to finance to businesses is merely 2.1 percent, while this in region, average 31 percent and access to SMEs only 7 percent and regional level nearly 25 percent, SCCI chief said.
He elaborated KP, which is contributing approximately16 percent share in the total national deposits against the advance to deposit ratio of 0.9 percent.
He highlighted the important role of SMEs economic growth, demanding access to finance under simplified procedure.
SCCI chief thanked SBP for conducting the awareness session and hoped this will be proved highly beneficial for the business community and stressed further conducting sessions on Islamic Banking and new schemes and products to take the business community full benefit from them.
Ziaul Haq Sarhadi stressed the need for reactivation of advisory committee of the State Bank of Pakistan to resolve issues with mutual coordination and consensus of the business community.
