ISLAMABAD, Oct 19 (INP-WealthPK): Islamabad Chamber of Commerce & Industry (ICCI) has urged the government to allocate land to chambers of small traders and small industries in every district to help new businesses grow, enhance exports, generate jobs and revive the economy.
President of ICCI Ahsan Zafar Bakhtawari stated this while addressing a delegation of Rawalpindi Chamber of Small Traders and Small Industries that called on him, a press release received by WealthPK stated.
The small and medium enterprises (SMEs) sector is the backbone of the economy as it contributes 40% to the country’s gross domestic product, 25% to overall exports and provides jobs to 78% of the non-agriculture sector, he said. But credit availability to SMEs is just around 6% of the total private sector credit in Pakistan, which is a major obstacle to their growth.
Ahsan said that high transaction costs and tough collateral requirements are the main hurdles, which are impeding bank lending to SMEs. He urged the government to address these issues in order to increase SMEs’ lending to at least 20% of the total private sector credit so that they can play a significant role in the economy.
He said that ICCI would cooperate in resolving the key issues of small traders and small industries to facilitate their better growth.
Malik Shahid Ghafoor Paracha Group Leader, Nadeem Sheikh Chairman and Tariq Khan Jadoon President, Rawalpindi Chamber of Small Traders and Small Industry said that the small businesses suffered massive losses due to the Covid-19 pandemic and they are now reviving after a long time.
However, they fear the political agitations in Islamabad may close their businesses again, which they cannot afford. They have called on the government and all political parties to settle their issues through dialogue and avoid any move that may disrupt businesses and create problems for the citizens.
The business leaders said that chambers of small traders and small industries need the government’s support for allocation of land to set up their own offices. This will enable them to play a more effective role in the economy. They said that they would work with ICCI to facilitate the growth of SMEs in the twin cities.
