Multan, June 18th: Mian Fazal Elahi Sheikh, President Multan Chamber of Commerce & Industry (MCCI) said that Small and Medium Enterprises (SMEs) were the backbone of economy as this sector constituted almost 90 per cent of all the enterprises in Pakistan but this sector was being ignored by the commercial banks. Expressing his views at a meeting with Chief Manager of State Bank of Pakistan in Multan,Sheikh Fazal Elahi stressed the need for changing the mindset of bankers and making the easy access of SMEs to Commercial banks because banks are reluctant to provide loans to SMEs and said the State bank of Pakistan (SBP) had increased the regulatory limit on the extension of credit for the SMEs that were a good step. He stressed for announcing separate bailout package for SME sector including freezing their payment against markup on loans and taking other serious steps in this regard. He further expressed that the gradual opening of all SMEs, and markets would further boost the business and economic activities which will bring the economy back on track. The steps taken by the government will lead to a revival of the economy in this critical condition, he said. Upon this Chief Manager, SBP Waqas Kashif Bajwa said that the State Bank of Pakistan has taken serious initiatives for the development of the SME sector with regard to banks financing, however, banks in South Punjab are not taking required interest despite very secure incentives given by the central bank. The SBP will strictly monitor the disbursement targets of banks fixed for the Small and Medium Enterprise sector, he added. Chief Manager SBP agreed to hold a monthly meeting with office-bearers of Multan Chamber like past in SBP auditorium. MCCI president submitted his recommendations on the dealing between the cotton ginners and banks and suggested that SBP should issue instruction/directions to banks not to deliver the pledged stock of ginners on KCA's spot rate and it must be delivered on the actual rate at the time of borrowing.He further said that banks be asked to act upon the advice of 180 days for payment of markup and period should not be cut.He said that the ginning industry had equally suffered during lockdown due to pandemic Coronavirus and all facilities must be extended to this sector. The meeting was attended by Mian Rashid Iqbal, Senior Vice President, Mian Nadeem Ahmed Sheikh Vice President, Deputy Chief Manager SBP Nadeem Ahmed, Former President of MCCI Khawaja Muhammad Yousaf,Syed Iftikhar Ali Shah, Khawaja Mansoor , Acting Secretary General Muhammad Shafiq and Imran Sadaf
