Industrial growth declines sharply: SCCI

President, Sarhad Chamber of Commerce & Industry (SCCI), Afan Aziz has said economic viability, investment, industrial growth have sharply declined over the last many years because of unfavourable environment for investors in the province, whereas low lending ratio of commercial banks and cumbersome procedure of loans were also hampering economic growth.
Talking to journalists at Khyber Union of Journalists (KhUj) "Mulaqaat" programme at Peshawar Press Club (PPC) on Friday he said that the banks high mark-up rate and absence of investment were the major reasons in downgrading the slow economic growth in the province. The commercial banks were providing less than 15 percent loan with strict terms and conditions, he added.
Arshad Aziz Malik, (KhUj) General Secretary, Yousaf Ali, Senior Vice President, Ali Hazrat Bacha, and a large number of journalists were also present. Aziz said that the terrorism-hit province was also being treated like rest of the provinces of the country. He maintained the diesel prices swells 25 percent over the last one year, whereas petrol prices also shot up with 20 percent in the country.
The president SCCI informed that the transportation charges had become double with gradually unstable prices of POL products. "We are producing cheapest electricity and gas, but in return purchasing on much higher prices, he informed journalists. He said that the fluctuation in prices have negative impact on the war-affected economy of the province.
"Negative image of the province combined with the stern attitude of banks towards lending has led to downward growth in Khyber Pakhtunkhwa," he said adding that the Prime Minister's Financial Package somewhat halted this tendency but if the authorities concerned did not take the downward trend seriously, the situation could exponentially deteriorate.
In this background, he said, there was a dire need for giving further extension to the Prime Minister's Financial Package. In order to mitigate the suffering of war-affected business community of the province, he proposed that the federal government should extend Prime Minister's Fiscal Relief Package for a further period of one year.
He said they were unable to touch figure of additional employment of 1,50,000 in the prevailing scenario. Presently, he said that the industrial sector provides nearly 70,000 employment in the province. Aziz said that about 0.85 percent revenue went to Sindh province in transportation of goods because they were quite far away from the port city.
About the Afghan Transit Trade Agreement (ATTA), he said that the pact was a source of revenue, which needed to extend its incentive to the Khyber Pakhtunkhwa as well. When asked the business community stance on granting Most Favoured Nation (MFN) status to India, he said that the traders and industrialists did not have any objections about the facility, but the safety of local trade and industry should also be ensured. He called for taking all chambers on board before preparation of negative lists of import items from India. He stressed the need for preparing a list of negative items to secure local products of the country. He also emphasised that the India should also reduce Non-Tariff Barriers (NTBs) as well.