PESHAWAR: The Bank of Khyber`s acting managing director Imran Samad informed Peshawar`s businessmen on Thursday that the provincial government had withdrawn the Rs200 million soft loans scheme money due to their negligible response to the scheme.

Members of the Khyber Pakhtunkhwa Chamber of Commerce and Industry have criticised the government for withdraw-ing the money, which was released to the bank by the previous Awami National Party-led government to provide liquidity to small traders and entrepreneurs, according to a KPCCI press release.

`The previous government had initiated the scheme to provide easy loans to businessmen extending a helping hand at a time when national banks were reluctant to issue loans in Khyber Pakhtunkhwa because of lawlessness, but the BoK management introduced requirements that were difficult to meet by small busi-nessmen,` Zahidullah Shinwari, KPCCPs president, said while replying to Mr Samad`s statement.

The BoK official told the KPCCI members that the sitting provincial government withdrew the funds after the businessmen did not show interest in the scheme. This led to attract criticism from the KPCCI members present on the occasion.

Mr Shinwari said that the government did not deem necessary to contact them before withdrawing the money, which, he added, was deplorable. He said the businessmen couldnot benefit from the scheme because of the high mark up rate.

He said the provincial bank should open a branch at Torkham in Khyber Agency to facilitate local traders dealing in exports to Afghanistan. He said this was essential in view of the federal government`s recent decision of restricting exports to Afghanistan with dollars. He said the bank should open the branch to issue form-E to the exporters at Torkham.

The businessmen on the occasion called for a better coordination between the chamber and the bank af-ter which the KPCCI and BoK management decided to set up joint coordination committees.

Responding to the businessmen`s suggestions, the BoK`s acting managing director said that the bank would extend maximum help to the small and medium enterprises. However, in response to a demand for issuing soft loans to the flour mills, Mr Samad said the matter should be taken up with the government. He said the bank had already got Rs4 billion stuck in sick industries of the province and making effort to recover that amount.