Union of Small and Medium Enterprises highlights importance of modern financing concepts for private sector
Karachi, September 12, 2014 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) highlighted the importance of modern financing concepts minimizing the bank’s risk at a talk show on a local television channel yesterday and urged the commercial banks to play proper role of financing the private sector and come out of their comfort zone by not simply parking their funds in government treasury as the government has its own source of raising funds through the National Savings Centre. Real banking is in financing the private sector and in risk management which is an important tool of banking.
President UNISAME Zulfikar Thaver spoke about asset based financing and emphasized the need for efficient risk management under collateral management, leasing, insurance and secured logistics with warehousing , shipping and speedy deliveries at destination points all over the globe.
Speaking about collateral management he explained that it is an ideal system of entrusting the custody and movement of goods from the primary level to the final destination and governed by a tripartite agreement between the borrower, lender and the collateral manager whereby the banks risk is minimized. The collateral manager certifies the goods as well as the warehouse. The electronic receipt indicates the weight and measure and the value and enables the lender to finance the borrower under its certification.
Thaver emphasized the need for improving the efficiency of banking, leasing, insurance and logistics as these are the pillars of economic growth.
He said in Pakistan there are hardly few collateral management companies and appreciated the efforts of the State Bank of Pakistan for promoting warehouse receipt financing (WRF) which is best suited for SMEs as it is asset based and enables the SMEs to obtain finance at every stage from raw materials to finished goods and transit to final destination and until the delivery to the buyer.
He welcomed the Dutch company Say bolt Pakistan Ltd to Pakistan and thanked them for their interest in promoting modern collateral management in Pakistan with all the connected services of pre-shipment inspection and quality control systems for the SMEs in textile, leather, foodstuffs, petroleum products, minerals and agri produce items and foodstuffs.
For more information, Contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Phones: + 92 35884225 and 6
Cell: + 92 300 8245307 and + 92 321 8245307
Fax: + 92 35380642