Banks shouldn’t ignore small businesses, farmers: President PEW

The Pakistan Economy Watch (PEW) on Sunday asked the banks not to ignore small businesses and small farmers which are central to the national development.

It asked the commercial banks to facilitate SME sector and farmers with small holdings so that they can enhance their business which will move the slow process of growth.

Farming and SME sectors are best suited to reduce unemployment by providing jobs but some policies are hindering their growth which must be discarded, said Dr. Murtaza Mughal, President PEW.  

He said that small and medium sized businesses and small farmers should be supported on the policy level and given preference in the provision of credit by the commercial banks.

Dr. Murtaza Mughal said that uninterrupted flows of finances are important for survival and these expansions are critical without which economy cannot be revived.

The role of role of micro finance banks remains crucial to ensure unobstructed flow of financial resources to the deserving sectors but the current level of financial services remains unsatisfactory which call for intervention.

He said that SME sector represents over 90 per cent of all enterprises, employs some 75 per cent of the non-agricultural workforce and contributes Rs 86 billion to the GDP while agricultural sector is the largest employment provider.

These sectors can play important role in poverty alleviation if equitable resource distribution is ensured as the growth potential of both the sectors for employment, income generation, and poverty reduction remains mostly untapped in Pakistan.