SBP Peshawar advisory body's meeting held at SCCI

The meeting of Advisory Committee (AC) of State Bank of Pakistan (SBP) Peshawar region was held at Sarhad Chamber of Commerce and Industry (SCCI) house here on Friday. The meeting was attended by SCCI president Zahidullah Shinwari, Senior Vice President, Mohammad Naeem Butt, members of executive body, SBP Chief Manager, Asad Shah, regional, groups head and heads of various departments of different commercial banks, SBP officials and industrialists and traders.
Zahidullah Shinwari, while speaking on the occasion expressed reservations over provision of loans facility by SBP and commercial banks to government institutions instead of private sector. He said the business community didn't take benefit from monitoring policy of SBP. He urged the commercial banks to increase ratio of lending to trade and industries along with SMEs against their increasing deposits in Khyber Pakhtunkhwa.
SCCI chief urged the SBP to evaluate rating of commercial banks on their performance and lending basis instead of deposits. He stressed the need for bringing easiness in opening of accounts in banks. He informed that the lending ratio of commercial banks is nearly 1.13 percent against their deposits of 7.4 percent in KP region, due to which industries, trade, agriculture, and SMEs sectors were adversely affected.
Expressing resentment over taking 20 to 25 days for opening of bank accounts of taxpayers, he asked the commercial banks for bringing easiness in documentation and others procedure in this regard. He urged the SBP being a regulatory authority, should play due role for issuance of loans through commercial banks in KP. He called for lowering the current interest rate, and urged the SBP for bringing easiness in policies for backwards and underdeveloped provinces.
He also urged the central bank for restoration of IDBP and introduction of such policies and schemes, which can directly promote foreign investment in KP. He also raised the issue of delaying in issuance of rebate on wheat export to exporters and urged the SBP to ensure early payment of rebate, pending from 2015.
Later, addressing on the occasion, SBP Chief Manager, Asad Shah has clarified that the commercial banks are lending in Khyber Pakhtunkhwa, and the KP province was not put in red zone. He assured that all banks will open LC 100 percent cash margin, in which no hurdle. He said SBP Peshawar is ready collect dollars on demand of commercial banks. He said that a complaint cell was established at SBP Peshawar to facilitate the business community. He also assured the resolution of rebate issue on wheat exports.