The business community has requested SBP to cover wage expenses of small businesses under its wage relief program at zero interest rate because cottage industries are on the verge of complete closure and will not be able to pay interest. KCCI Small Traders Committee Chairman Abdul Majeed Memon has said that SBP disburses loans through commercial banks which are reluctant to lend to microbusinesses. One big business can give enormous revenue to commercial banks, hence, they do not bother to disburse loans to small businesses. If the SBP wants to address issues faced by small businesses, it has to draft a separate policy for micro and small enterprises to enable them to keep their workforce, survive in current critical conditions and sustain in the long term. These businesses account for roughly 70% of Pakistan’s economy and provide employment to more than 10Mn people.
16/4/2020