Minister seeks loan relief as 25% rates bite

Federal Communications Minister Abdul Aleem Khan has asked the government to encourage banks to reschedule loans for businesses facing economic strain, saying borrowing at an interest rate of 25% makes operations extremely difficult. Speaking at the Lahore Chamber of Commerce and Industry on Saturday, he said he had sent proposals to the prime minister aimed at lowering industrial production costs and would convey business representatives’ recommendations to the government.

Khan also outlined the National Highway Authority’s finances and infrastructure plans. He said annual revenue had risen from about Rs66 billion when he took charge around two and a half years ago, with a Rs160 billion target for this year, while expenditure was being held near Rs50 billion. The authority has Rs224 billion allocated for ongoing Public Sector Development Programme projects, mainly for national highways in Balochistan; toll income is also intended to support new roads. Separately, the government told an LCCI delegation it was working with the private sector to encourage economic activity and address industry’s challenges.