LCCI President Calls for Enhanced Support from SBP for Business Growth

In recent discussions, the Lahore Chamber of Commerce and Industry (LCCI) has emphasized the critical need for the State Bank of Pakistan (SBP) to enhance its support for the business community. The president of LCCI, Mian Abuzar Shad, articulated that facilitating businesses is not just beneficial but essential for the economic growth and prosperity of the country. This call for action comes at a time when the business sector is facing numerous challenges that hinder its smooth operation.

During a meeting with Tariq Riaz, the Chief Manager of the State Bank, Mian Abuzar highlighted the importance of transitioning the conventional banking system to Shariah-compliant Islamic banking by 2027, as directed by the Federal Shariah Court. He praised the SBP for its proactive steps towards this goal, noting that the demand for Islamic banking is on the rise across Pakistan.

Mian Abuzar Shad also pointed out that the LCCI is focusing on key areas such as taxation reforms and the digitization of the economy. He stressed that modernizing the financial system is crucial for transparency and efficiency, which are vital for fostering a business-friendly environment. Concerns were raised regarding the Federal Board of Revenue, with traders expressing their reservations about certain practices that complicate their operations.

One of the significant issues discussed was the current monopoly of commercial banks in opening Letters of Credit, which has created obstacles for businesses. Mian Abuzar urged the State Bank to take control of commercial banks to ensure fair and transparent banking practices. He called for clear instructions to be issued to all commercial banks, emphasizing the need for cooperation with LCCI members.

Moreover, Mian Abuzar Shad commended the State Bank's initiatives aimed at enhancing financial access for women entrepreneurs and Small and Medium Enterprises (SMEs). He described these efforts as vital for the economic growth of Pakistan, highlighting the importance of supporting these sectors as essential engines of development.

In addition, the introduction of banking kiosks across the country in collaboration with leading banks was praised. These kiosks are expected to provide easier access to banking services, particularly in underserved areas, which is a significant step towards promoting financial inclusion.

To further strengthen the relationship between the State Bank and the LCCI, Mian Abuzar invited the SBP to conduct awareness sessions at the chamber. These sessions would provide valuable insights into financial regulations and upcoming reforms, benefiting LCCI members immensely.

In response, Tariq Riaz acknowledged the strong relationship between the State Bank and LCCI, assuring the business community of continued support. He highlighted several initiatives, including an upcoming awareness program focusing on SMEs, particularly women entrepreneurs, scheduled for October 10.

Furthermore, the Chief Manager shared insights into various financial programs targeting key sectors such as agriculture, Islamic banking, and digitalization. He emphasized the SBP's commitment to ensuring that all businesses, regardless of size, have access to the financial tools necessary for growth.

In a forward-thinking move, the State Bank is also introducing financial education into the curriculum for grades 9 and 10. This initiative aims to raise awareness among the younger generation about financial management, contributing to a more financially literate and responsible population.

The ongoing dialogue between the Lahore Chamber of Commerce and the State Bank of Pakistan highlights the importance of collaboration in fostering a conducive environment for business growth. By addressing the concerns of the business community and implementing supportive measures, both institutions can play a pivotal role in driving the country’s economic development. As the landscape of banking and finance continues to evolve, it is crucial for all stakeholders to work together to ensure a prosperous future for Pakistan.