PM stresses need for promoting SMEs

Prime Minister Imran Khan on Thursday said that the government was committed to taking all possible steps for economic growth and promotion of investment.

At a review meeting held to discuss economic stabilisation and development work, the premier said, “The promotion of small and medium enterprises (SMEs) will boost economic activity and wealth creation which, besides improving the economy and creating more employment opportunities for the youth, will also help retire the country’s debt.”

Khan added that the country, burdened with debt due to loans taken by previous governments, could only recover from the trap through enhanced production. He directed the relevant authorities to remove all hurdles in the way of business activities through timeline-based targets. The prime minister was presented a report on the progress on provision of facilities to the SMEs. State Bank of Pakistan Governor Reza Baqir told the meeting that for the first time in the country’s history, the SMEs were being provided business loans by banks without any collateral.

He highlighted that collateral-free lending would significantly help promote SMEs in the country. “For the first time, an effective partnership between the government, State Bank and commercial banks in this respect has been established,” he added.

Baqir apprised meeting participants that under the loan scheme, the central bank would provide around 50% of loss guarantee.

Published in The Express Tribune, March 19^th, 2021.

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