State Bank of Pakistan urges to focus on SME sector problems

Karachi, July 30, 2018 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) will invite the attention of Syed Samar Hasnain, executive director State Bank of Pakistan (SBP) to the difficulties the SME sector is facing and urge him to take prompt steps to redress the problems of access to finance. President UNISAME Zulfikar Thaver said the executive director of SBP has convened a meeting of the National Financial Inclusion Strategy (NFIS) Technical Committee as its chairman on 31st July 2018 with an agenda to update and discuss the recommendations of the working groups of ‘ Policy, Product and Services Development ‘ and ‘ SME Finance Capacity Building’.

The meeting will also discuss funding mechanism for capacity building of bankers and SMEs, establishment of Centre of Excellence (CoE), tax incentives for SMEs and resource requirements for key actions. Thaver said he will take the opportunity to speak about the need for special products for SMEs, ‘Pay as you earn schemes’, merchant accounts for facilitating e-commerce, financing SMES to buy commercial properties on easy repayment terms and setting up of SME Institute for training.

He will also raise the issue of high landed cost of imported raw material due to depreciation of rupee and the banks demanding 100 % margin on imports. The banks are also not inclined to finance exports to third world countries. State insurance at low premium is required to make banks comfortable he pinpointed.

UNISAME has also urged the SBP to expedite the setting up of Exim Bank and revitalizing the SME Bank. UNISAME has also proposed to the SBP to stop further depreciation of rupee through proactive methods. Whilst the sector appreciates the intention of the SBP to entrust the setting up of CoE at National Institute of Banking and Finance (NIBAF) for banks, it suggest that the Small and Medium Enterprises Development Authority (SMEDA) be given the task to set up CoE for SMEs separately.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307