PESHAWAR: The business community and officials of Small and Medium Enterprise Development Authority (Smeda) have agreed on several points, including a proposal to establish a revolving fund for provision of interest-free loans to the small and medium enterprises in the provincial metropolis, in order to boost the local economy.

The proposal was floated during a meeting of the Peshawar Chamber of Small Traders and Industries president Ehtisham Haleem with Smeda provincial chief Javed Iqbal Khattak here on Wednesday.

The meeting discussed proposals for the establishment of revolving fund and research and development cell and holding of business excellence award to acknowledge the efforts of outstanding businesspersons.

About the revolving fund, Mr Khattak said that it would be utilised for providing interest-free loans to the members of the chamber. He said that the chamber would deduct 3-4 per cent from the entire portfolio to meet the monthly administrative expenditure of the trade body.

For establishment of the fund, every member will donate a minimum of Rs10 per day and it will be deposited in a separate account maintained by the chamber.

According to a statement, disbursement of the fund will be carried out through a committee to be notified by the chamber.

The applicant must be below 60 years of age and recommended by the trade association concerned to be eligible for availing of the fund. It will be distributed on first come, first served basis.

It said that the applicant for loan would require two personal guarantors and the disbursement would start after three months of establishment of the fund. It said that establishment of the revolving fund would help provide opportunity to SMEs for getting easy access to loans.

Speaking on the occasion, Mr Haleem announced formation of the committee to transform the concept of the establishment of such a fund into reality.