Banking sector plays an important role in the promotion of trade and industry; however it should adopt focused strategies at the local level to offset the ill impact of liquidity perpetrated due to the non-payment of refund claims by Federal Board of Revenue (FBR), said Chudhary Muhammad Nawaz president Faisalabad Chamber of Commerce and Industry (FCCI). Talking to a two-member delegation of UBL here on Thursday; he said that Pakistan is a blessed country because of its agriculture production. "We produce surplus cotton, wheat and rice along with other cash crops,"
He said and added that despite of this plus point our economy has not performed well only due to the lack of valued-addition. Quoting the example of Bangladesh, he said that it was earning more than Pakistan from its textile export only due the value-addition of imported cotton. He said the government as well as other supporting institutions should encourage value addition by adopting solid, positive and sustained policies. Similarly, the government should also provide an overall favourable climate so that business community could fully concentrate on its business and play its important role in strengthening national economy.
Chaudhry Muhammad Nawaz was critical of the prevailing circumstances and said the business community has unnecessarily been entangled in non-productive pursuits by creating energy related problems. "Business community has no peace of mind which is prerequisite to do healthy businesses," he said and added that very recently the government has clamped 10 percent duty on imported yarn which has posed an open threat to the survival of value-added sector.
Quoting crisis of previous years, he said that yarn was exported exorbitantly totally ignoring the needs of domestic market. "At that time the doctrine of free-market mechanism was presented to justify the out of proportion export of yarn", he said and added that this situation had created artificial shortage of yarn at domestic market coupled with increase in its rates. The yarn bag of Rs 10,000 was sold at Rs 22,000 and only value-added sector suffered. However during the crisis period, spinners earned hefty profits at the cost of yarn consumers, he said and added that now once again a new drama has been staged to tight the noose around the neck of value-added sector. He further said that gas supply has been denied to the printing and dying sector further complicating the problems already confronted by the value-added textile sector. He said that in these circumstances, the banking sector has to focus on value-added SME sector.
Syed Asad Aziz Regional business head UBL offered a state-of-the-art and multi-featured debt card to President FCCI with loan limit of 2 million. Abdur Rehman District Manger UBL was also present during this meeting.
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