Thursday , March 21 2019
Home / Business and Finance / State Bank urges SMEs to take benefit from finance policy
State Bank of Pakistan
State Bank of Pakistan

State Bank urges SMEs to take benefit from finance policy

KARACHI: The central bank has put in place a number of refinance facilities both for purchase of plant and machinery for small and medium enterprises (SMEs) and working capital finance for special sectors, a statement said on Wednesday.





Speaking to SMEs based in Sialkot, Syed Samar Hasnain, executive director of SBP, said that the banks have been instructed to inform SMEs about their facilities.

In meetings with manufacturers and exporters belonging to SME sectors and bankers based in Sialkot, he urged the SMEs to take a step ahead and approach nearby bank branches to know about the SBP’s facilities available for them.

“In terms of numbers, most of the entities in your region are SMEs. If you want to graduate from indirect exporter to direct exporter, you can modernise and expand your plant and equipment by availing the SBP’s refinance facilities for modernisation,” Hasnain said.

He encouraged the SMEs to avail of SBP’s refinance facility for renewable energy to overcome power problem. SMEs can also use the SBP’s subsidised refinance facility for setting up silos, cold storage facility and warehouses, he added.





Hasnain assured the SMEs that the SBP Banking Services Corporation-Sialkot office will be taking stock of the financing extended to the SMEs and progress, in this regard, will also be closely monitored.

In a presentation, salient features of the SBP’s policy for the promotion of SME finance were explained. It highlighted the nine pillars of the policy, which included improving regulatory framework, upscaling through microfinance banks, risk mitigation strategy, simplified procedure for SME financing, program based lending and value chain financing, capacity building and awareness creation, handholding of SMEs-non financial advisory service and leveraging technology to promote SME financing, and, simplifying taxation regime for SMEs.

The meetings/awareness sessions were attended by representatives from associations including Pakistan Sports Goods Manufacturers & Exporters Association, Pakistan Gloves Manufacturers & Exporters Association, Leather Garments Manufacturers & Exporters Association, Pakistan Hosiery Manufacturers & Exporters Association and Pakistan Cutlery & Stainless Utensils Manufacturers and Exporters Association in Sialkot. Regional heads, SME heads and branch managers of all banks operating in the region also participated in these meetings.

Check Also

ECC discusses improvement of cotton crop in the country

ISLAMABAD: Economic Coordination Committee of the Cabinet (ECC) has discussed measures for the improvement of …

Leave a Reply

Your e-mail address will not be published.