SBP enhances financing for businesswomen

Move comes after receipt of feedback from various stakeholders

KARACHI:

In a bid to encourage higher women participation in the economy, the State Bank of Pakistan (SBP) has enhanced the financing limit under its Refinance and Credit Guarantee Scheme for Women Entrepreneurs from Rs1.5 million to Rs5 million.

"The decision was taken in light of the feedback received from various stakeholders about the current financing limit being insufficient to cover financing needs of women entrepreneurs," the SBP said in a statement on Tuesday.

According to the central bank, the decision is in line with the government of Pakistan's policy to support and revive economic activities in the country and the SBP's key objective of improving access to finance for priority segments including women entrepreneurs.

The SBP introduced the Refinance and Credit Guarantee Scheme for Women Entrepreneurs in August 2017 only for the underserved areas of Pakistan to promote financial inclusion and access to finance for women entrepreneurs, it said.

"Subsequently, the scope of the scheme was enhanced to cover the entire country," it pointed out.

The central bank elaborated that under the scheme, the SBP provided refinance facility to the participating financial institutions at 0% on their financing to women entrepreneurs at the maximum end-user rate of 5%. Moreover, 60% risk coverage was also available for the participating institutions, it said.

According to the statement, the rise in financing limit is expected to enhance financial inclusion of women.

"More women entrepreneurs are likely to utilise the financing for setting up new businesses or for expanding the scope of their existing businesses," the central bank said.

Published in The Express Tribune, August 19^th, 2020.

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