KARACHI: The Union of Small and Medium Enterprises (UNISAME) has invited the attention of the State Bank of Pakistan (SBP) to the lack of financing facilities for the Small Medium Enterprises (SMEs) as their requirements of running finance for procurement of inventory, machinery, expansion, import and export are not funded by the commercial banks.
President UNISAME Zulfikar Thaver urged the SBP to play its due role and impose upon the banks to finance the SMEs who are deprived of even bridge financing between the inventory and receivables leave aside modernization, balancing and replacement.
He said at this rate it is impossible for the sector to grow and apparently it is the sector, which can make the economy turn around if supported diligently.
He emphasized that SBP should seriously look into the SME financing for short term and long term to enable the SMEs to remain commercially active in imports and exports and this can be done by purchasing and discounting their bills and also allowing them packing credits.
He said the SBP has launched various schemes for SMEs but the commercial banks are not inclined to take the risk and SMEs have not been able to benefit from the schemes.
UNISAME pointed out that banks should be trained in SME financing to comprehend SME financing and learn risk management.
UNISAME expressed appreciation for the leasing facilities offered by the leasing companies but complained that the leasing companies were charging high mark up because they were themselves borrowing funds from the banks.
Comments
Comments are closed for this article.