Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has criticized the State Bank of Pakistan’s decision to allow commercial banks to charge up to 9% interest rate under the SME Asaan Finance Scheme (SAAF).
Revealing that SBP will give refinance to commercial banks at 1% and the latter can charge up to 8% above that, FPCCI President Mian Nasser Hyatt Maggo demanded that the SAAF scheme must not have a total interest rate above 3% so that it is affordable to SMEs and at par with Temporary Economic Refinance Facility (TERF). He also deplored SAAF scheme’s total refinance limit of Rs 1.19 billion as small and insignificant.
