SBP working on new mechanism to aid SMEs

Will help small units to apply for bank loans under concessionary credit schemes

KARACHI:

The State Bank of Pakistan (SBP) is making all possible efforts to enhance collaboration with the industry and trade chambers across the country to spread awareness of its credit schemes to boost their utilisation, remarked SBP Banking Services Corporation (BSC) Managing Director Muhammad Ashraf Khan.

Inaugurating the two-day SME Mela in Multan on Wednesday, he informed the participants that the SBP BSC, in partnership with the industry, chambers and women associations, was working to introduce a new mechanism to aid small and medium enterprises (SMEs).

Under the strategy, the SBP will identify potential businesses and their employees to help them apply for bank loans under the concessionary credit schemes for the SMEs and housing sector.

Highlighting the objectives of SME Mela, he added that it would bring banks and the business community under one roof and provide an opportunity for micro, small and medium enterprises to seek guidance from the SBP and banks about the concessionary refinance schemes.

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He encouraged the SMEs, which had strong business viability but lacked collateral for loans, to apply for the SBP’s SME Asaan Finance (SAAF) scheme. Speaking on the occasion, Special Assistant to Prime Minister on Youth Affairs Muhammad Usman Dar talked about the Kamyab Jawan Programme, saying it was exclusively designed for the young entrepreneurs.

He praised SBP Governor Dr Reza Baqir for expanding access to credit at grassroots level for small businesses, women entrepreneurs and the people struggling to have their own home.

He detailed that the central bank introduced new credit schemes to achieve the objective such as SAAF scheme, Mera Pakistan Mera Ghar (MPMG) and SBP Refinance Scheme for Women Entrepreneurs. Multan Chamber of Commerce and Industry (MCCI) President Khawaja Muhammad Hussain announced full support of regional chambers for raising awareness of SBP’s concessionary financing schemes among the business community of Multan and surrounding areas.

The event was attended by representatives of chambers of commerce and industry, associations of traders, women entrepreneurs and SME clusters of Multan, Khanewal, Vehari and DG Khan, besides officials of the SBP BSC and banks.

Published in The Express Tribune, January 27^th, 2022.

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