The Union government demonstrated its commitment to economic advancement by approving the transfer of K100 billion from the COVID-19 special loan fund to the State economic promotion fund in November 2023. This decision aligns with the fund’s objective of bolstering the economic sectors of both State-owned and private enterprises nationwide.
Simultaneously, on 26 October 2023, the State economic promotion fund allocated K100 billion to the Ministry of Agriculture, Livestock, and Irrigation as capital for implementing the oil crop cultivation project, focusing on groundnut, sesame, and sunflower crops.
This contribution augmented the State economic promotion fund, raising its total to K552 billion from the initial K452 billion. Officials must systematically disburse loans and collect debts to preserve the fund’s capital. The capital funds issued by the State economic promotion fund should be efficiently utilized to contribute to enhancing the State economy.
Acknowledging the potential impact of unavoidable natural disasters, such as cyclonic storm Mocha, officials need to consider the losses incurred by individuals and organizations that borrowed from the fund. In cases of significant impact, officials should contemplate exemptions for those affected, balancing the fund’s financial integrity with compassion.
The State economic promotion fund, established with substantial contributions from the government’s capital fund and cash donations from well-wishers, emphasizes the responsible allocation of funds. To achieve success and development, stakeholders must ensure that allotted funds and loans are directed efficiently towards relevant sectors, preventing any loss or misuse.
Furthermore, borrowers are urged to repay loans to the fund promptly, with the only acceptable reasons for the delay being the distinct impacts of natural disasters or armed conflicts. The fund’s sustainability relies on the collective ability of borrowers and organizations to uphold their promises, ensuring the fund remains intact and operational in the long term. Loyalty and commitment are essential factors in stimulating economic growth.
The judicious management of loans and funds is pivotal for the success of the State economic promotion funds. The fund can play a vital role in fostering a resilient and thriving State economy through adherence to promises, efficient resource allocation, and a compassionate approach to unavoidable adversities.
Creditors and debtors are benefiting each other. Both of them should not be ungrateful. If not, their relations will be ruined, and their interests will deteriorate in various means. As a noble truth, borrowers must pay back their debts to the creditors without fail. Creditors must consider various reasons for debtors with empathy and compassion for cementing their relations. If so, both sides will have a booming economy.
