SIALKOT: Managing Director State Bank of Pakistan Qasim Nawaz on Tuesday said the SBP would continue to extend full cooperation and play its due role for the development of SME sector in Pakistan.
Addressing the participants of SME Finance Mela 2015 jointly organized by State Bank Of Pakistan and Sialkot Chamber of Commerce and Industry, he said: "We will work with the industry and other stakeholders to ensure further strengthening of the industry as part of our market development role."
He highlighted a brief overview of State Bank's policy measures for promotion of SME finance in the country. He said a key policy measure had been taken by the State Bank for introducing SME financing target to banks.
He said within SME targets, Islamic SME financing targets had also been advised to banks having Islamic banking operations, adding that this key measure would play a catalytic role in enhancing the share of SME financing from the existing 5.6 percent.
Apart from setting targets, SBP had taken steps like issuance of revised Prudential Regulations for SMEs defining S&M segment for the first time with objective to focus on Small Enterprises, targeted refinance schemes for SMEs, financing for modernization of SMEs, introduction of credit guarantee scheme for Small and Rural Enterprises, under which credit risk coverage of 40 percent is provided to the banks for extending loans to small and rural enterprises which otherwise face challenges in accessing finance from the formal sector and arrangements of SME cluster studies etc, he said.
The SBP MD further added that institutional capcity building as well as training and development of bank staff etc in order to equip them with various aspects of SME financing, and a number of other measures were in process which would further provide an impetus to the SME sector.
In this regard SBP had been encouraging for participation of private banks in Prime Minister's Youth Business Loans programme, he said.
The MD said a sustainable solution required to take a more holistic view of these issues where a large number of players were involved in increasing access to finance for SMEs, adding that these players State Bank of Pakistan, commercial banks, SMEDA, SECP and provincial governments had the key role to play in improving access to finance for SMEs.
Earlier, President SCCI Maj. (retd) Mansoor Ahmad presented address of welcome and highlighted different issues.
The SBP MD earlier visited different stalls of bank and business women, ORIX and Asia Insurance.
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