ISLAMABAD, Sept 11: Solution to present economic crisis lies in encouraging growth of trade and industry by facilitating the entrepreneurs through soft term loans aimed at establishing more commercial and industrial units in the country.

These views were expressed by Islamabad Chamber of Commerce and Industry president Mohammad Ijaz Abbasi while exchanging views with a three-member delegation of World Bank comprising Ms Ann Christine Rennie, lead financial sector specialist (private and financial sector), Shamsuddin Ahmad, senior financial sector specialist South Asia and Ms Claire Grose, a lawyer.

ICCI President said this phenomenon was discouraging investment and industrialization in the country because high mark up on credit and many other factors like hefty spike in the prices of gas, electricity, fuel, raw material, land, taxes, etc., had pushed up the cost of business.

He said financial institutions instead of relaxing their credit policies were offering credit on strict collateral conditions.

He suggested to the financial institutions to offer long term credit facility spanning over 8-12 years period to enable businessmen to payback easily. He stressed the need of encouraging SME sector by offering easy financial support as this sector is proving engine of growth in most countries and it has great potential to flourish in Pakistan and create a lot of employment for educated young talent.

ICCI President said that so far main focus of financial institutions remained on promoting consumer financing in the country which led to the phenomenal hike in inflation and emphasized that they should change their strategy and launch credit services for promoting capital investment in the country, which would expand economy, provide more jobs and enhance exports.

He requested the World Bank officials to help Pakistan by offering long term soft loans for development of agriculture.

Speaking on the occasion, World Bank delegation members thanked ICCI president for showing warm hospitality and said that they had come to Pakistan to hold discussion with the officials of State Bank of Pakistan, Ministry of Finance, Securities and Exchange Commission and other key stakeholders and their purpose of visiting ICCI is to know about the problems and issues being faced by the business community in obtaining credit facility from financial institutions.—Online