Government urged to help promote SMEs

Islamabad Chamber of Commerce & Industry in collaboration with State Bank of Pakistan organized an awareness session on SBP's financing schemes for SMEs. Rabia Yaqoob Khan, Assistant Chief Manager, SBP's Banking Services Corporation gave a detailed presentation to the business community on financing schemes.
Speaking at the occasion, Rabia Yaqoob Khan said that SBP had launched 9 financing schemes for the promotion of SMEs, but these enterprises were not taking full benefit of these schemes for growth and expansion. She said the share of SMEs in private sector credit was currently 6-8 percent and SBP has planned to increase it to 17 percent by 2020.
Highlighting the schemes, she said that SBP has offered 9 financing schemes for SMEs that include Refinance Facility for Modernization of SMEs, Financing Facility for Storage of Agriculture Produce, Financing Scheme for Renewable Energy, Long Term Financing Facility (LTFF), Islamic Long Term Financing Facility (I-LTFF), Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises, Export Finance Scheme, Credit Guarantee Scheme (CGS) for Small and Rural Enterprises and Prime Minister Youth Business Loan Scheme.
She said that maximum SMEs should avail these schemes for growth and development. In his welcome address, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that of the total business enterprises in Pakistan, SMEs constituted over 90 percent and were the backbone of the economy.
They contributed 30 percent to GDP, 25 percent to exports and 78 percent to industrial employment that showed their crucial role to the economic development of the country. He said the tough collateral conditions of the banks were the major hurdle for SMEs growth. He urged that SBP should ask banks to offer credit to SMEs on soft terms that would help them in better growth and development.
Muhammad Naveed Malik Senior Vice President and Nisar Mirza Vice President ICCI said that strengthening SMEs would yield multiple benefits for the economy as it would promote trade and industrial activities, enhance exports, encourage investment, create more jobs and increase tax revenue of the government. They emphasized that government should pay special attention to promote the SMEs that would pave way for sustainable development of the economy.