A big amount of Rs 200 million allocated in the annul development programme (ADP) of Khyber-Pakhtunkhwa for financial year 2011-12 for extending support to SME sector in the province remained unutilised for last one and half year. The fund for extending financial support to small traders of Khyber-Pakhtunkhwa was proposed during the interim set up headed by then chief minister Engineer Shams-ul-Mulk and an amount of Rs 100 million was allocated under SME Credit Line Scheme.
The present provincial government while recognising the importance of SME sector not only doubled the amount, but also included it in its annual development programme. However, despite the passage of one and half year not a single penny of the fund has been utilised and it is still in the current account of the Bank of Khyber (BoK). A large number of small shopkeepers have started complaining about the none-utilisation of the fund and attributing it to conditionality of the recommendation of Sarhad Chamber of Commerce and Industry (SCCI) that is creating hurdle in obtaining loans under the scheme.
The present ANP led provincial government in Khyber-Pakhtunkhwa has launched two self-employment schemes of Bacha Khan Khpal Rozgar and Hunarmand Rozgar Schemes that have received remarkable response from the people of the province. So far no one has raised finger on them and funds in both schemes have been distributed in a very fair and transparent manner.
But, on the other hand, the SME credit line scheme is another revolutionary measure of the provincial government. But, as compared to Bacha Khan Khpal Rozgar and Hunarmond Rozgar schemes under which thousands of people submitted applications, not a single application has been filed for the SME credit line scheme and the fund remained unutilised.
Under the scheme on the recommendation of chamber, SME working in services sector is entitled for obtaining a soft loan from Rs 0.5 million to Rs 1 million in head of machinery up gradation. The SMEs of the province are demanding that like Bacha Khan and Hunarmand Rozgar schemes the SME credit line scheme should also be opened to enable the terrorism and militancy affected SMEs of the province to take benefit of it and prevent the lapsing of the fund.
The removal of the conditionality and release of credit under the scheme will help promote business activities and improvement in the economically stagnant situation. On contact, Group Vice President BoK, Abdul Qadoos Khan also confirmed that not a single loan issued under the scheme. Like SMEs he also attributed it to the conditionality of the recommendation of chamber. He said that due to the conditionality a huge amount of Rs 200 million had remained utilised since last one year.
source: http://www.brecorder.com / Business Recorder Report / Home> Business & Economy> Pakistan / October 27th, 2012