Friends of Economic & Business Reforms (FEBR) President Kashif Anwar has raised his concern over the complicated system of obtaining loan from the banks for the SMEs, appealing the government to make the procedure easier to save the trade and industry from default owing to severe liquidity crunch.
In his open letter, written to Federal Minister for Industries & Production Hammad Azhar, he said that currently, every business cash flow has disturbed because of lockdown and those who are working, their supply chain is incomplete either supplier is missing or customer is not available.
“It has become unmanageable for every individual and business concern in the absence of cash flow to pay utility bills of electricity, gas, water, telephone, mobile and other payments like Income Tax, Sales Tax, Social security, Education Cess, EOBI and many others to meet. At this time we have no other door to knock for help except that of the government.”
Kashif Anwar requested the government to allow the payment of utility bills for the month of March, April, May & June 2020 including electricity, gas, telephone, mobile, water of residential, commercial and industrial without late fees and disconnection until the business activities are normalized.
He said that banks are charging surcharge amount and late fee on power bills on the plea that they have not been received any written instructions from the utility companies in this regard, which is very unfortunate.
He suggested the government to allow all treasury payments like Income Tax, Sales Tax, Social security, Education Cess, EOBI and others to be deposited after their due dates without any penal action or fines until the business activities are normalized.
FEBR President said that the SME sector is the back bone of our economy and is a source of employment generation and revenue for exchequer it must be given same importance as of export sector and also given loan from banks at 6% so they can face the economic and financial challenges.
He proposed that all the existing loans in any shape taken from any bank by individuals, retailers, SME may be rescheduled at 6% mark up till June 2021.
“If the government does not frame short and medium term policies for businesses, besides ensuring their implementation to bear the pandemic effects of COVID-19 many businesses will not be in position to continue their affairs smoothly and will default which will directly and indirectly affect the whole economy.
He said that since 22nd March 2020, majority of the markets, industries, private businesses are closed except some exempted sectors and because of closure of businesses everyone cash flow is badly affected.
