Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, has called on Pakistan's banking sector to take a more proactive approach in supporting small and medium enterprises (SMEs) and boosting value-added exports to revive the country's struggling economy. Speaking at Bol News, the minister highlighted how a cautious banking approach and lack of financial facilitation are stifling private sector growth, particularly in trade, industry, agriculture, and fisheries. "While the demand for loans in Pakistan is immense, banks are overly focused on risk-free profits, neglecting their role in enabling private investment," the minister stated. He pointed out that the current interest rate, reduced to 15% from 22% last year, has done little to address the financial constraints faced by SMEs. "Small business owners are even willing to take loans at 25% interest rates to establish their enterprises, but banks remain hesitant to provide the necessary financial support," he added. Mr. Sheikh criticized the banking sector for prioritizing secure profits over contributing to economic development. "Banks are not meant to operate solely as profit-centric entities. Their reluctance to take risks is holding back the potential of Pakistan’s entrepreneurs. Even the government seems more focused on increasing tax revenues from banking profits rather than incentivizing productive investments," he remarked. The minister underscored the importance of SMEs, describing them as the "engine of growth" for Pakistan’s economy. "Whether in trade, industry, or agriculture, SMEs are critical drivers of progress. Without accessible financing, their ability to contribute significantly to GDP remains unrealized," he said. Shifting focus to the fisheries sector, Mr. Sheikh highlighted the untapped potential of Pakistan’s exports. "Our fisheries exports are currently at $400 million, but with value-addition industries, this figure could easily be multiplied fivefold. Unfortunately, small-scale fishermen lack access to the financial resources needed to invest in modernizing their operations," he explained. Highlighting the export gap, Mr. Sheikh noted, "China’s exports have surged to $3,500 billion, while Pakistan’s remain stuck at a dismal $30 billion. This is a clear indication of how much we lag behind in developing value-added industries and diversifying our export base." The minister called for a strategic shift to enable economic growth. "If we are serious about revitalizing our economy, banks must play their role by providing investment loans, especially to SMEs. Similarly, the government needs to actively facilitate private sector investments and prioritize the establishment of value-added industries in sectors like agriculture, trade, and fisheries," he asserted. Qaiser Ahmed Sheikh's remarks underline the urgent need for reforms to address the gaps in financing, export performance, and industrial development, offering a blueprint for sustainable economic growth. *******
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