SCCI Demands Soft Loans For Entrepreneurs, Startup Businesses

President of the Sarhad Chamber of Commerce and Industry (SCCI) Fuad Ishaq on Tuesday urged the bank of Khyber and commercial banks to issue soft loans for promotion of new entrepreneurship and startup business, industry instead of provision of the running financing facility

PESHAWAR, (UrduPoint / Pakistan Point News - 21st May, 2024) President of the Sarhad Chamber of Commerce and Industry (SCCI) Fuad Ishaq on Tuesday urged the bank of Khyber and commercial banks to issue soft loans for promotion of new entrepreneurship and startup business, industry instead of provision of the running financing facility.

Fuad said revival of Development Financing Institutions (DFIs) and Industry Development Bank of Pakistan (IDBP) in a true sense is vital for industrialization and promotion of small and medium scale industry and business. He called for proper training and awareness about various loans schemes to new entrepreneurs and startups.

The SCCI chief asked the BoK and commercial banks to facilitate the business community under passion of service and friendly atmosphere. He furthermore emphasized KP’ constitutional rights on electricity and gas should be ensured.

In order to enhance export through railway, he suggested launching cargo trains from Peshawar to Karachi and fully functional dry-ports along with restoration of the railway system.

For promotion of mutual Pak-Afghan trade, he stressed enforcement of sustainable and long-lasting policies and allowing trade in Pak rupee with Afghanistan and permission of re-export of the finishing goods/products.

The chamber president stated that if tariff/duties of 224 items of Pakistani products should be equalized to Afghanistan and Iran, then smuggling will be eliminated.

He added that the business community should be taken on board regarding closure of borders so that it will prevent huge financial losses and unhurt bilateral trade as well.

Fuad Ishaq was speaking to members during the visit of Mr Irfan Saleem Awan, Chief Financial Officer/Acting CEO/Managing Director of the Bank of Khyber (BoK) along with his team here at the chamber house on Tuesday.

Besides, Senior vice president of the SCCI Sanaullah Khan, vice president Ejaz Khan Afridi, former senior vice president Imran Khan Mohmand, former vice president Junail Altaf, member of the chamber executive committee Pervez Khan Khattak, Affaf Ali Khan, Monawar Khurshid, Qurtul Ain, senior management, high officials of the BoK, a large number of industrialists, traders and importers and exporters were present in the meeting.

The SCCI chief lauded the resilience and bravery of the KP business community and people, who remained steadfast against terrorism and continued their businesses and played a role in country peace, solidarity and economic development by giving matchless sacrifices and taking bodies and fought against conspiracies of anti-state forces.

Fuad expressed grave concern over putting commercial banks KP into the red zone, stating that banks have surged up deposits but lending ratio is completely negligible in the province.

He said Pakistan is situated at an important location so its position will be further improved in the region and rest of the world by taking full benefit from the locational advantage.

Furthermore, he said there is the Silk route, or CPEC, KP will be made a hub of economic and trade activities through them.

Half of the world population is in our reach, and our geo-political situation is very important, particularly KP is considered a gateway to Afghanistan and Central Asian states so we need to take full benefit from it, Fuad stressed.

The SCCI chief said the U.S has imposed anti-dumping duty on China, which has created an opportunity of $100billion for export, so he emphasized that Pakistan should take benefit from it and the Bank of Khyber also play a frontline role in this regard.

He asked BoK to take initiatives to remove the business community and clients’ grievances and complaints about various loans schemes. He mentioned during his meeting with the head of U.S mission and other officials, they have also made emphasis on provision of soft loans to new entrepreneurs and startup businesses, which SCCI highly appreciated and endorsed.

The SCCI president said KP is producing 6500 megawatt electricity in which 2700 megawatt is utilized in summer and only 1100 megawatt in winter season, rest of the produced electricity exported to the national grid.

Giving examples of Bangladesh, Japan and Korea, Fuad said these countries open import and produce finishing products by getting raw material and then exporting and increasing their foreign exchange.

The SCCI chief expressed grave concern over payment of Rs8 Trillion interests on loans.

Talking about hydel, nuclear and thermal power, Fuad said all these resources expenditure is only Rs11 per unit but due to inefficiency of power distribution companies, thieves and growing line losses, Rs23 per unit has been increased in it, calling for steps for its eradication at government level.

Similarly, he said total gas production of Khyber Pakhtunkhwa is 615 MMCFDs against its demand of 200MMCFDs and rest of 415 MMCFDs were been given to the national grid if the 200MMCFDs were fully supplied with proper gas pressure to KP so the gas issues would be resolved.

He added that the rate of 200 MMCFDs to KP were also charged equal to other provinces, which is totally unjustifiable and unfair.