The central bank buys assets and goods from industries, calls on the business community

The central bank buys assets and goods from industries, calls on the business community

The business community has called on the government to encourage the State Bank of Pakistan to buy assets and goods and raise interest rates for troubled car industries, as well as address the challenges of liquidity and the impact of the Corona virus. Immediate clearance of tax refunds will also be made.

In a meeting with a team of ministers, the leading businessman also suggested restoring the courier service and online business to the government to help small and medium enterprises (SMEs) get through this difficult time.

Prime Minister's Adviser to the Treasurer Dr. Abdul Hafeez Shaikh presided over the meeting with the business community through a video link, which was also attended by the Prime Minister's Adviser on Trade and Industry, Abdul Razzaq Daud.

Sources with information said that representatives of large industries said they could withstand their workforce for 2 to 3 months, but if the situation remained so long, the government would have to come forward to protect them.

He suggested that central banks in other countries, including China and the United States, are buying assets, shares and goods of hard-to-find companies, which is good for both industry and government, while the State Bank lags behind.

The textile industry sought government support and demanded zero-rated or at least 70 percent input tax refunds.

The export sector also highlighted the loss caused by the dollar shortage and stated that they have no liquidity for more than a month.

He also asked the government to bear 30 to 40 percent of their bills.

A section of Shashika also told the government that the recent rate cut by the central bank was inadequate and that the value of the currency would not be helpful unless the government had strong control over foreign exchange.

He suggested that the government announce the late payment of their loans and interest payments for 6 to 12 months instead of 3 months.

A well-known trader told Dr Hafiz Sheikh that their sales were almost non-existent, leading to a liquidity crisis which could improve the situation if the companies refinance the excess utility bills imposed on them.

He also called for effective government intervention to facilitate the transportation of goods ready for export orders.

Dr. Hafiz Sheikh also suggested to the business community to make the best use of Rs 200 billion for factory workers and Rs 100 billion for small and medium companies and agriculture.

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Abdul hafeez sheikh State bank

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