Industrialists have demanded that the government provide a level-playing field to all players of the local industry aimed at bolstering economic growth.
They slammed the prevailing banking laws, mentioning the unilateral focus on interest recovery and discretionary powers that primarily benefitted banks and lending institutions. Despite entrepreneurial efforts to expand businesses, many find themselves unable to navigate the stringent conditions imposed by banks.
They lamented that those businesses which secured loans from banks to initiate operations were grappling with soaring interest rates and stringent conditions, leading to the erosion of both capital and business within a few months.
Read Govt borrows Rs6tr from banks
Criticising the 22% policy rate maintained by the central bank over the past four months, Hyderabad Chamber of Small Traders and Small Industry President Muhammad Farooq Shaikhani said in a statement that it was the highest rate in Asia, while neighbouring countries maintained significantly lower rates at around 6.5%.
He highlighted the juxtaposition of the sector’s highest interest rates and attractive profits, while mentioning the central bank’s statistics that indicated a surge of Rs5,354 billion in deposits of all Pakistani banks from December 2022 to December 2023. Despite reaching a historic high of Rs27,840 billion in total deposits, he said challenges were being faced by SMEs.
