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KTAC proposes bank for small enterprises

RECORDER REPORT

KARACHI: Imran Saeed Baghpatee, Convenor, Karachi Tajir Action Committee (KTAC), has proposed to the government to set up a specialised bank for small and medium enterprises.

In a proposal to the government, he said the small and medium size business and industries which contributed to the GDP around four times as much as the large scale industries and provided employment to 65 percent of the work force in the manufacturing sector, received only 15 percent share in credit. They have to depend largely on non institutional credit at high rate which was not fair, he noted.

He said the bank should be sponsored by leading financial institutions such as Modarabas, leasing company and various trade bodies looking after the interests of small scale business.

He said the bank should work on purely commercial lines and would finance only viable and profitable venture.