Sarhad Chamber of Commerce & Industry (SCCI) President Afan Aziz on Monday termed 24 percent increase in Non-Performing Loans (NPLs) in a period of one year as highly disappointing. He pointed out that non-availability of major utilities and a very high mark-up rate in the country were the major reasons behind the unprecedented spiral in NPL.
He added that Khyber Pakhtunkhawa has not only been experiencing the brunt of Afghan war for the past three decades, it also has to endure the impacts of non-availability of utilities and high mark-up rate. The report he said portrayed a dismal picture of GDP growth and NPL size in the country, yet the growth rate in Khyber Pakhtunkhawa has been negative for the past decade, which is alarming to say the least.
Aziz observed that the industrial growth in Khyber Pakhtunkhawa has sharply declined, while most of the units have closed down due to rampant militancy, terrorism and persistent energy crisis. This detrimental environment forced the investors to shift their businesses to other provinces not just in search of a better feasibility but a better life, he remarked.
He lamented that the banks are reluctant to lending owing to prevailing situation in Khyber Pakhtunkhawa. He maintained that the investment remained very low over the past many years in the province due to rigidity in the banking system. Afan Aziz said the bank's monopolised and unrealistic policies are multiplying the miseries of business community, saying the tendency has mostly affected the businesses and economic activities in the province.
"Negative image of the province combined with stern attitude of banks towards lending has led to downward growth in the Khyber Pakhtunkhawa," he said, adding that the Prime Minister's Financial Package somewhat halted this tendency but if the authorities concerned did not take the downward trend seriously, the situation could exponentially deteriorate.
He said, there is a dire need to give further extension to the Prime Minister's Financial Package. In order to mitigate the sufferings of war-affected business community of the province, he proposed that the federal government should extend Prime Minister's Fiscal Relief Package for one more year.
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