AGL 5.95 Decreased By ▼ -0.13 (-2.14%)
ANL 9.26 Decreased By ▼ -0.14 (-1.49%)
AVN 80.82 Decreased By ▼ -0.64 (-0.79%)
BOP 5.20 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.86 Decreased By ▼ -0.04 (-0.82%)
EFERT 81.82 Increased By ▲ 0.27 (0.33%)
EPCL 53.94 Decreased By ▼ -0.06 (-0.11%)
FCCL 14.29 Decreased By ▼ -0.11 (-0.76%)
FFL 5.93 Decreased By ▼ -0.12 (-1.98%)
FLYNG 7.44 Decreased By ▼ -0.12 (-1.59%)
FNEL 4.95 Decreased By ▼ -0.05 (-1%)
GGGL 9.18 Decreased By ▼ -0.14 (-1.5%)
GGL 16.51 Decreased By ▼ -0.19 (-1.14%)
HUMNL 6.14 Increased By ▲ 0.45 (7.91%)
KEL 2.77 Decreased By ▼ -0.02 (-0.72%)
LOTCHEM 30.81 Increased By ▲ 0.26 (0.85%)
MLCF 27.45 Decreased By ▼ -0.34 (-1.22%)
OGDC 74.27 Increased By ▲ 0.27 (0.36%)
PAEL 15.98 Decreased By ▼ -0.21 (-1.3%)
PIBTL 5.21 Decreased By ▼ -0.02 (-0.38%)
PRL 17.01 Decreased By ▼ -0.28 (-1.62%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
TELE 10.00 Decreased By ▼ -0.04 (-0.4%)
TPL 7.65 Decreased By ▼ -0.05 (-0.65%)
TPLP 19.41 Decreased By ▼ -0.36 (-1.82%)
TREET 22.72 Decreased By ▼ -0.47 (-2.03%)
TRG 146.80 Decreased By ▼ -0.55 (-0.37%)
UNITY 17.09 Decreased By ▼ -0.10 (-0.58%)
WAVES 10.33 Decreased By ▼ -0.05 (-0.48%)
WTL 1.42 Decreased By ▼ -0.04 (-2.74%)
BR100 4,330 Increased By 3.4 (0.08%)
BR30 16,296 Increased By 46.9 (0.29%)
KSE100 42,904 Increased By 23.3 (0.05%)
KSE30 15,805 Decreased By -4.6 (-0.03%)
Follow us

KARACHI: The State Bank of Pakistan (SBP) has amended the Prudential Regulations for SME financing and now a small enterprise and medium enterprise up to 5 years old will be considered as startup.

In order to align the definitions of small enterprise and medium enterprise with the SME definition prescribed in SME Policy 2021, notified by the government of Pakistan, the SBP has amended the definition related regulations.

As per the Regulation SE R-1 for Definition of Small Enterprise, any entity having annual sales turnover of up to Rs 150 million will be considered Small Enterprise (SE) and a small enterprise up to 5 years old will be considered as start-up SE.

In addition, as per amended Regulation ME R-1 for Definition of Medium Enterprise, with annual sales turnover above Rs 150 million to Rs 800 million will be Medium Enterprise (ME). Accordingly, a medium enterprise up to 5 years old will be considered as start-up ME.

According to the SBP, these amendments are applicable with immediate effect on new financing. However, since the banks and DFIs need to segregate their existing portfolio according to the revised definition of Small Enterprise and Medium Enterprise, they are allowed an implementation period up to June 30, 2022.

SBP to launch ‘Challenge Fund for SMEs’

Moreover, SBP, incorporating these amendments, has also issued updated Prudential Regulations for SME financing.

The SBP has advised the Banks and DFIs to ensure circulation of these regulations among all their offices and branches for meticulous compliance in letter and spirit. Non-compliance of Prudential Regulations will lead to punitive action under the relevant provisions of BCO, 1962, the SBP warned.

The State Bank is making efforts to support the SME sector by providing financing facilities on a priority basis. SBP had already asked banks & DFIs to prepare a comprehensive SME Specific Credit Policy duly approved by their Board of Directors. The Credit Policy must give special mention to Small Enterprises (SE) financing keeping in view their specific characteristics and business conditions.

The SME sector contributes significantly towards national GDP, employment generation and export earnings. SBP believed that the impact of financial inclusion of SMEs has important implications for economic growth, competitiveness, and job creation.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Abrarhussain Mar 30, 2022 10:11pm
Information please sme
thumb_up Recommended (0)
Abrarhussain Mar 30, 2022 10:12pm
Sme information please
thumb_up Recommended (0)

PRs for SME financing amended: Five-year-old small, medium enterprises to be considered startups: SBP

'We stand by our promise': Moonis Elahi says will dissolve Punjab assembly on Imran's call

PM Shehbaz urges Turkiye to invest in Pakistan's mega solar project

Ishaq Dar says Pakistani delegation to leave for Russia for potential oil deal

Pakistan secures €150mn in aid from ECO Trade and Development Bank: Marriyum

Saudi Arabia blocks Qatari beIN’s World Cup streaming platform

Lewandowski breaks World Cup duck as Poland beat Saudi Arabia

Nine terrorists killed in gun battle with security forces in Balochistan: ISPR

Ronaldo’s ‘total genius’ won World Cup penalty, says FIFA group

Relations with India, gender equality stressed at ‘talks by engro’ event in IBA

Owned by resident Pakistanis: FBR starts taxing hundreds of foreign properties