The provision of microcredit would create employment opportunities at the local level and, in turn, enhance GDP growth and help in achieving sustainable and robust economic growth, said Finance Minister Shaukat Tarin.
His comments came during a meeting held to discuss features of a new credit scheme for the small and medium enterprise (SME) sector.
State Bank of Pakistan (SBP) Governor Dr Reza Baqir, who was present on the occasion, spoke about the proposal for the provision of funds for small businesses (without collateral) for up to three years through the network of commercial banks.
“Banks will design innovative products to reach out to smaller businesses whereas the government will provide a risk-sharing facility to the banks,” he added.
The governor shared that, at present, there were around a hundred thousand small businesses availing SME credit facilities provided by the commercial banks. The new scheme will accelerate the credit offtake ratio of smaller businesses up to 30% approximately over the next three years.
Published in The Express Tribune, May 7th, 2021.
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