Governor State Bank of Pakistan Dr Reza Baqir on Friday urged the business community to avail low cost housing scheme loans for the construction of 5 to 10 marla houses for their employees.

Read more: ‘Loans being given to those who were earlier not allowed to enter banks’

The risks of these loans would be borne by the government, he said while talking to Lahore Chamber of Commerce and Industry president Mian Nauman Kabir at the SBP office.

The governor said that SBP Asaan Finance Scheme (SAAF) would be a game changer in enhancing access to finance to the SMEs. He said that the scheme would address the challenge of lack of collateral. He said that SME mela would be organized in LCCI in collaboration with SMEDA. He said that the women entrepreneurs recommended by LCCI would be facilitated in running their businesses. He highlighted that with the objective of stimulating sustainable economic growth, the SBP was taking various initiatives to facilitate the business community.

Mian Nauman Kabir said that 9.75% policy rate would have dire consequences on economic growth rate.

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“It will surely hinder the process of industrialization and private sector growth. Pakistan should bring interest rate at par with the regional countries. He stressed the need of taking measures for bringing stability in exchange rate. He also suggested tariff measures for restricting luxury and non-essential items imports.