PESHAWAR: The Sarhad Chamber of Commerce and Industry has termed the attitude of commercial banks with the business community in Khyber Pakhtunkhwa unfriendly and demanded of the government to announce special incentives and interest-free loans for investors in the province to boost businesses and industries.

SCCI president Sherbaz Bilour said in a statement here on Wednesday that the attitude of commercial banks was unfriendly with the business community though businesses had badly suffered due to Covid-19 pandemic in the province.

“I have apprised SBP deputy governor Ms Sima Kamil and other relevant officials in Karachi of the problems being faced by the business community in our province and also complained against the attitude of commercial banks,” said Mr Bilour.

The commercial banks, he claimed, had declared Khyber Pakhtunkhwa as ‘red zone’, and they were avoiding provision of loans to the business community.

The SCCI chief said the businesses and industrial growth were badly affected due to prolonged war against terrorism fought in this region. He said that now the situation had deteriorated after outbreak of coronavirus pandemic.

The SBP, he said, should retain the present policy rate while keeping in view the unfavourable economic situation.

Mr Bilour appreciated the SBP for introducing a cashless system and hoped that the initiative would help bring improvement and transparency in the banking system. He said the business community would extend full cooperation to make the initiative a success.

He also lauded the government for introducing business-friendly policies i.e. electric vehicle policy, reduction in tax ratio and special incentives for construction industry. He called for inclusion of allied sectors in the fiscal relief package announced for the construction industry.

The chamber chief proposed that SCCI and SBP should make joint efforts for making favourable environment for business and industrial growth as well as attracting new investment in the province.

He suggested establishment of risk management units of commercial banks in Khyber Pakhtunkhwa and urged the SBP to direct the commercial banks to make sufficient lending in the province by excluding it from ‘red-zone’.

Published in Dawn, December 31st, 2020