SBP chief di­rects banks to ac­cel­er­ate lend­ing ac­tiv­i­ties in KP

The Pak Banker - - FRONT PAGE -

Gov­er­nor SBP ad­dressed a joint meet­ing of banks' CEOs and Cham­bers of Com­merce at Pe­shawar. He urged the banks top man­age­ment to ac­knowl­edge the chang­ing busi­ness con­di­tions of KP prov­ince and should ac­cel­er­ate the pace of its credit ex­pan­sion and other trade fa­cil­i­ta­tion ac­tiv­i­ties in the prov­ince. He was ad­dress­ing a dis­cus­sion ses­sion on credit ex­pan­sion in KP with the rep­re­sen­ta­tives of KP cham­bers of com­merce/ busi­ness com­mu­nity, FPCCI and pres­i­dents of banks at a lo­cal ho­tel in Pe­shawar Mon­day.

Gov­er­nor stated that our bank­ing in­dus­try has been play­ing its role for in­creas­ing eco­nomic ac­tiv­ity not only through chan­nel­iz­ing funds but through other bank­ing ser­vices. He how­ever ex­pected that fur­ther im­prove­ment will also be brought in the qual­ity of ser­vices and prod­ucts.

Adding fur­ther, the Gov­er­nor men­tioned that the un­fa­vor­able se­cu­rity sit­u­a­tion in KP prov­ince has ad­versely af­fected the over­all eco­nomic en­vi­ron­ment dur­ing the last decade. This en­vi­ron­ment nat­u­rally com­pelled the fi­nan­cial in­sti­tu­tions to ex­er­cise ex­tra pru­dence while tak­ing ex­po­sures in the dis­turbed ar­eas. Be­sides, the low pres­ence of large-scale in­dus­tries, rel­a­tively smaller size of ur­ban cen­ters and lower de­mand for fi­nanc­ing checked the credit growth in the prov­ince.

While ad­dress­ing a con­cern shown by the busi­ness com­mu­nity rep­re­sen­ta­tive, he dis­pelled the im­pres­sion that there is any red zone and cau­tioned the banks against any such dis­crim­i­na­tion. On de­mand of re­ac­ti­vat­ing ad­vi­sory com­mit­tees, he ad­vised the rel­e­vant func­tionar­ies to re­ac­ti­vate them and en­sure their reg­u­lar meet­ings.

While ac­knowl­edg­ing the sac­ri­fices of KP peo­ple, the Gov­er­nor of­fered full sup­port to the KP busi­ness peo­ple. He cat­e­gor­i­cally men­tioned that per­sonal ac­counts can­not and should not be used for busi­ness pur­poses. The pres­i­dent KP Cham­ber of com­merce, Zul­fiqar Ali Khan, ap­prised the fo­rum about dif­fi­cul­ties faced by the busi­ness com­mu­nity. Other rep­re­sen­ta­tives of busi­ness com­mu­nity also shared the chal­lenges faced by them. Speak­ing on the oc­ca­sion FPCCI pres­i­dent, Ab­dul Rauf Alam pointed out the po­ten­tial op­por­tu­ni­ties on lift­ing of UN sanc­tions on Iran. Gov­er­nor em­pha­sized upon the banks to re­store correspondent re­la­tion­ship and SWIFT code with el­i­gi­ble Ira­nian banks as early as pos­si­ble to fa­cil­i­tate trade be­tween two broth­erly neigh­bor­ing coun­tries.

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