Member KCCI and Executive Director AMTF Ateeq Ur Rehman has demanded from the government and financial institutions for building active SME portfolios in banking sector and "capacity to finance SMEs". He said that SMEs are still missing from Bank's radar. There is a great demand for trade finance in the SME sector. Lending to SME financing for building fixed assets and financing their domestic and foreign trade is the need of the day.
It is now a well-known fact that access to financing is one of the biggest hurdles being faced by SMEs in their quest to sustain and grow themselves. With over 90 per cent of the country's enterprises fall under SME category, only 7 per cent of the total private sector financing is given to SME sector. Financial access is a key driver in developing the SME sector which in turn leads to economic growth of the country.
Our SMEs day-by-day are becoming uncompetitive across the global value chain because SMEs in our country faces numerous problems including access to finance which effected the overall productivity of SMEs. Total financing by a bank should be fixed at a ratio of corporate vs SME Financing.
He further said that SME sector is the backbone of Pakistan's economy in terms of its contribution towards GDP, employment generations and export development but still neglected. The economic survival is in SME financing rather than pumping money in a few corporate tycoons to make them richer.
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