Small and Medium Enterprises bank to be privatized with sector agenda
Karachi, September 23, 2015 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) thanked the State Bank of Pakistan (SBP) for completing formalities for prompt functioning of Exim Bank and also for deciding to privatize the SME Bank with an agenda to cater to the sector specifically. President UNISAME Zulfikar Thaver expressed thanks to the SBP for timely decisions and said the sector is anxiously waiting for the Exim Bank and also the SME Bank under private sector with the SME specific agenda to cater to the SMES up to 80% of their portfolio.
The Exim Bank will play an important role in boosting exports to third world countries and non traditional markets. The collective imports of raw material will also be facilitated by the Exim Bank and the SMEs will have the benefit of uninterrupted supply of raw material. Likewise the SME Bank will have many branches and will offer services of bridge financing, project financing, trade financing and running finance to the SMEs at affordable mark up.
Thaver said the SBP now needs to promote Venture Capital with legal framework to enable the venture capitalist and the entrepreneurs set up units under equity participation of local and foreign venture capitalist especially the Chinese who are keen to set up joint venture units with transfer of their technology. This will be the game changer as many imported goods will be manufactured in the country with foreign technology.
He reiterated the need to enhance limit of micro finance banks (MFB) to enable them cater to the small also along with the micro entrepreneurs. The MFB are in a position to finance the small due to their experience and risk management skills which they have acquired with the micro entrepreneurs.
For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Cell: +92-300-8245307, +92-321-8245307