PESHAWAR: Governor State Bank of Pakistan, Ashraf Mahmood Wathra has directed the private banks to expand credit facility for business community of Khyber Pakhtunkhwa after improvement in security situation.
This he said during a seminar-cum-discussion arranged here on Monday by SBP with bankers, businessmen and heads of chamber of commerce and industries.
President Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Abdul Rauf Alam, President KPCCI, Zulfiqar Ali, Chairman Pakistan Banking Association, Aftab Manzoor, President and CEOs of 30 private banks and leading businessmen of KP were present on the occasion.
"The objective of the discussion-seminar was to call heads of all the banks of the country to KP and apprise them about improvement in security situation in the province," said Governor SBP.
Talking to newsmen after the seminar, Governor SBP said due to terrorism wave which prevailed in KP for around last one decade, the banking activities reduced due to high risk factor. Private sector businesses were deeply affected in Khyber Pakhtunkhwa Province and this visit to KP is part of removing the impression that situation is still not suitable for investment.
The Governor SBP said after launching of operation Zarb-e-Azab and measures taken by our security forces, the situation has improved significantly and businesses are returning to normalcy.
To provide support to businesses, particularly small scale, in terms of availability of credit, the SBP invited heads of all banks to Peshawar to meet with representatives of KP Chamber and businessmen for removing their grievances.
The focus of the seminar is to discuss views regarding difficulties in availabilities and provision of credit and solutions to bring improvement in banking service in KP, he added. Governor SBP, Ashraf Mahmood Wathra said the KP businessmen deserve appreciation for continuing their business at a difficult time in the province.
He said the share of KP businessmen in banks deposits is 7.4 percent while the lending facility from banks was 1.3 percent.
He admitted that this share of lending by banks is very meager and expressed the hope private sector banks would now enhance lending facility to the businessmen.
He said the Advances to Deposit Ratio of banking sector is 48 percent in the country and in KP it is only 7.4 percent which is very meager and measures needed to be taken in regards with increasing ADR ratio.
THe Governor SBP also apprised the participants of the discussion about different measures taken by SBP for provision of loans to SME, exporters and corporate sector and said businessmen of KP can also avail from these facilities.
Speaking on the occasion, President KP Chamber of Commerce and Industry, Syed Zulfiqar Ali appreciated the step taken by SBP of inviting heads of all the private banks of the country to KP for assessing improvement in security situation in the province. He said business community of KP has suffered a lot due to impact of war against terrorism and less facilities by banking sector to businessmen of the province which further aggravated their difficulties. Governor SBP assured businessmen and president KPCCI that in future banking sectors would extend their cooperation with them for the growth of economy and business in the province.
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