Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday lauded the move of the State Bank of Pakistan (SBP) to support the neglected sector of SME by providing collateral-free loans worth sixty billion for three years.

Governor of the central bank, Dr Reza Baqir, has accepted our longstanding demand to support the SME sector having 40 percent share in GDP, 25 percent share in exports, and providing jobs to millions, he said.

Mian Zahid Hussain said that SMEs would get the loan at nine percent interest under the initiative, which should be reduced to five percent. In comparison, partner banks should be asked to bring a maximum profit of two percent so that the initiative can become successful.

Talking to the business community, the veteran business leader said that the country lacks a proper system for SME lending. The government lacks information about this critical sector. The majority of the SMEs prefer to remain undocumented, which will deprive them of the movement’s benefit.

The government and central bank should plan to support SMEs which are not ready to become part of the documented economy, he demanded.

He said that government must strike a balance between income and expenses, salvage the economy and masses from the mafia and expand the tax net with the help of tough decisions.

He said that Finance Minister Shaukat Tarin wants to reduce dependence on borrowing and work with the opposition as well as establishment; therefore, all the stakeholders should cooperate with him.

Mr Tarin also wants to expand PSDP and support vulnerable segments of the society according to the vision of Prime Minister Imran Khan.