SMEs assured of better financing

SMEs assured of better financing

LAHORE: The central bank is making efforts to facilitate the small and medium enterprises (SMEs) with more financing possibilities, the managing director of the State Bank of Pakistan Banking Services Corporation (SBP-BSC) said on Monday.

Talking to reporters on the occasion of SME Finance Mela, Qasim Nawaz said the targets for SME loans would be fixed on the pattern of agriculture loans, however commercial banks would carry out the exercise on their own. He hoped the volume of SME loans would increase as did agriculture loans.

Mr Nawaz told a questioner that he was not authorised to comment over the allegations levelled by Pakistan Tehreek-i-Insaf Chairman Imran Khan against SBP Deputy Governor Saeed Ahmad for his involvement in money laundering.

However, he said the SBP was making efforts to eliminate money laundering.

Earlier, while addressing the gathering, he said the SME sector could make progress if all banks and government departments were on the same page.

He said SMEs had up to 33 per cent share in the country’s GDP and was providing jobs to 75pc population from the non-agri sector.

The central bank strongly felt that SMEs were not getting enough facilities from the financial sector in proportionate to its share in economy, he said.

Punjab Small Industries Corporation MD Bilal Ahmad Butt said the volumes of loans to the SME sector had reduced from Rs400-500 billion in 2004 to Rs300b in 2016.

He suggested introducing credit guarantee scheme for the SME sector.

Representatives of banks and financial institutions having SME finance portfolio, various business bodies and entrepreneurs also attended.

Source: http://www.dawn.com/news/1251495/smes-assured-of-better-financing

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