For SMEs: Govt mulls two new schemes

The ministry works on another scheme aimed at providing interest-free loans to small businesses

RAWALPINDI: Two more schemes are being introduced for small businesses and the government is well aware of the challenges being faced by the small and medium enterprises (SMEs) in Pakistan, said Federal Minister for Industries and Production Hammad Azhar.

Speaking at a meeting at the Rawalpindi Chamber of Commerce and Industry (RCCI), the minister said a scheme would be introduced in collaboration with the State Bank of Pakistan (SBP) under which up to 40% of liquidity (capital) would be provided to businesses having turnover of Rs2 million.

He added that the ministry was also working on another scheme aimed at providing interest-free loans to small businesses. "A package of Rs50 billion has been announced for small businesses under which rebate is being given on electricity bills," he pointed out.

Speaking on the occasion, RCCI President Saboor Malik requested the government to minimise the documentation required for the wage refinance scheme in order to facilitate small traders.

"Interest rate should be brought down further while mark-up on loans under the refinance scheme for wages should be abolished," he stressed.

Published in The Express Tribune, May 9^th, 2020.

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