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Wednesday, November 14th, 2018

UNISAME urges Banks to develop products for SMEs

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Karachi, August 01, 2018 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) thanked Syed Samar Hasnain executive director State Bank of Pakistan (SBP) and his team for the SME friendly policies and strategic uplift plan for the sector under the NFIS at a meeting held at SBP on 31st July 2018. The role of SBP is remarkable as it has created awareness all over Pakistan and is offering several schemes for the uplift of the sector.

President UNISAME Zulfikar Thaver said the sector needs a strong Small and Medium EnterpriseDevelopment Authority (SMEDA) and it needs to be strengthened and increased in size and scope to outreach the SMEs. He also thanked SMEDA for its efforts and achievement despite very limited resources.

The participants namely senior bankers, officials and directors of SBP, SMEDA and UNISAMEdiscussedthe recommendations of the working groups of ‘Policy, Product and Services Development’ chaired by Javed Iqbal of AlFalah Bankand ‘ SME Finance Capacity Building’ by UNISAME chief. Senior JointDirector Akhtiar Ahmed highlighted the recommendations. Imran Ahmed additional director SBP also added valuable comments having played a very positive role in the recommendations prepared by both the working groups.

The meeting discussed funding mechanism for capacity building of bankers and SMEs, establishment of Centre of Excellence (CoE), tax incentives for SMEs and resource requirements for other key actions.The executive director formed groups of bank executives and SMEDA to be chaired by Nadia Jehangirgeneral manager SMEDA for integrated efforts and to acquaint stakeholders about role of SMEDA.

Thaver urged the banks to developed special products for SMEs such as ‘Pay as you earn schemes’,Merchant accounts for facilitating E-commerce, financing SMES to buy commercial properties on easy repayment terms and setting up of training the trainers centres. He urged the SBP to enhance its risk management education for banks.

He also raised the issue of high landed cost of imported raw material due to depreciation of rupee and the banks demanding 100 % margin on imports. The banks are also not inclined to finance exports to third world countries. State insurance at low premium is required to make banks comfortable he pinpointed.The executive director informed the establishment of Exim Bank and said the process is almost complete and just a matter of time. The matter of SME Bank is also under consideration.

UNISAME also proposed to the SBP to stop further depreciation of rupee through proactive methods.Thaver appreciated the intention of the SBP to entrust the setting up of CoE at National Institute of Banking and Finance (NIBAF) for banks and suggested that the Small and Medium Enterprises Development Authority (SMEDA) be given the task to set up CoE for SMEs separately. The executive director welcomed the suggestion of franchise financing and advised UNISAME and Mukesh Kumar provincial chief SMEDA to submit module for study and adoption on approval.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307
Email: unisame@gmail.com

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