Bank Alfalah Limited's President and Chief Executive Officer (CEO) Atif Aslam Bajwa has said the bank will launch some new products to facilitate customer and proved better banking facilities. Speaking at a meeting of Korangi Association of Trade and Industry (Kati), he said that business community and general public was reluctant to carry cash in prevailing grim law and order condition and they needed facility to this problem.
The CEO said that mobile banking was the most appropriate solution of the problem, adding that under mobile banking accountholder could operate his account from his office or home and it could be operated while sitting on table of business. He said mobile banking was beneficial for both the bank and the accountholder as it reduced cost of banking. He said Pakistan was going through very rough time politically and economically however there was silver-lining and situation would get better very soon.
He said business community was shy of making further investment due to the situation particularly the energy crisis. He informed that the bank had recently signed the agreement with State Bank of Pakistan (SBP) for project Document under the Department for International Development (DFID) funded Financial Inclusion Programme (FIP).
The president said the SBP under the DFID-funded FIP would provide funding support to Bank Alfalah in undertaking the IFC Small and Medium Enterprise (SME) Advisory Project. The main objective of the project is to create a symbolic podium which can position Bank Alfalah to cater to the financing needs of SME sector through a holistic banking and advisory services solution.
He said banks' lending to the SMEs sector should be improved as SMEs were the major contributor to the country's economy. Bajwa said SMEs contribution to the national economy should be 60 percent instead of 30 percent prevailing at present. Referring to Non Performing Loans (NPLs), he said it had crossed 17 percent. Bajwa did not agree that the bank making huge money and said it might be true for few big banks.
Speaking on the occasion leader of business community and former president FPCCI S M Muneer said that country's economy was passing through a very difficult period and industries were closing down across the country due to non-availability of gas, electricity and grim law and order conditions. Criticising the government attitude, he said on one hand it failed to provide power and gas to run industries, while on the other hand increased power and gas tariff frequently. He pointed out that the government was begging for dollars but did not bother for the dollars which could be earned easily through exports. He expressed his dismay over the government's pathetic attitude towards industry and exports sector, and said due to ongoing energy crisis over 10 million workers had been rendered jobless in Punjab and other parts of the country. He showed his dismay that despite the depressing situation SBP did not lower interest rates.
President All Karachi Industrial Alliance, Mian Zhahid Hussain said that due to prevailing economic condition industries were closing down and volume of non-performing loans had mounted to Rs 780 billion from Rs 450 billion while the government borrowing had reached to Rs 11,000 billion from Rs 400 billion four years back.
KATI Chairman Ehtesham Uddin urged that considering the situation bank interest rate should be cut down to single digit. He showed his concerns that increase of Rs 1,098 billion of government's loans from banking system was quite irritating. He praised the BAFL's Korangi Branch and its Manager Rehan Reaz for facilitating the industrialists in their banking needs. Chairman Standing Committee on Banking Tariq Mailk and Vice Chairman, Hasham A Razzak also spoke on the occasion.