LAHORE: Governor State Bank of Pakistan (SBP) Dr. Reza Baqir on Friday said that the Bank would announce new policy regarding Electronic Credit Information Bureau (eCIB) in next few days. The State Bank of Pakistan (SBP) wants more dialogue with the business community and is committed to serving the un-served sectors like SMEs and women entrepreneurs.
The Governor said this while speaking at the Lahore Chamber of Commerce and Industry (LCCI). Deputy Governor SBP Seema Kamil, Murtaza Syed, Chief Manager, State Bank of Pakistan (SBP) Javaid Iqbal Marth, Director Exchange Policy Department SBP Arshad Bhatti, LCCI President Mian Tariq Misbah, Senior Vice President Nasir Hameed Khan and SAARC Chamber of Commerce President Iftikhar Ali Malik also spoke on the occasion.
The Governor said the State Bank is focusing heavily on digital financial services and is bringing a system where payments would be done in seconds. He said the interest rate has been decreased by 6 percent and the exchange rate is now moving in a two-way orderly fashion. Highlighting the steps taken by the State Bank of Pakistan, Dr. Reza Baqir said, in recent times, the SBP has decreased the interest rate to facilitate businesses affected by the COVID-19. Secondly, he said, "We have deferred around Rs 650 billion principal payments out of which 90 percent beneficiaries are small entrepreneurs (borrowers of microfinance banks)."
Dr. Reza Baqir said, "to support the businesses in their mark-up payments, Rs. 200 billion loans were restructured." He said under PM Rozgar Finance Scheme, Rs. 232 billion were given for the salaries of employees, adding that all schemes provided a relief of around more than Rs. 1 trillion. He said businesses can avail the Temporary Economic Refinance Facility (TERF) till 30th March 2021. Under the TERF, they can get a long-term loan for 10 years on 5 percent interest, adding that businesses can use these loans for Balancing, Modernization and Replacement (BMR).
He said the commercial banks have been given the target to increase the housing finance to 5 percent of the loan portfolio by December 2021. This will help around 20 to 30 allied sectors of housing.
He said the facility of Roshan Digital Account is being provided to overseas Pakistanis, through which the account can be opened without going to the embassy and the attestation of any document, adding that Pakistanis having assets abroad can also avail this facility. He said all these achievements are the result of the institutional reforms.
The State Bank Governor said Pakistan Credit Guarantee Corporation is being set up through which the banks will get 60 percent risk cover for giving loan to SMEs, adding under markup subsidy scheme, small houses will be financed for 3 to 5 percent.
The LCCI President said there are a large number of businesses who are not able to clear their bank liabilities in time due to the current liquidity crisis and hence their names are included in Electronic Credit Information Bureau (eCIB).
Copyright Business Recorder, 2020