New scheme to be launched for SMEs; Razak

Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood said on Sunday the government is set to launch a scheme to support Small and Medium Enterprises (SMEs) to promote small businesses across the country.

In a couple of tweets, he said, "The govt is finalizing a scheme to support SMEs across all sectors & this programme will be announced shortly." "It is our endeavour to help small businesses as compared to larger ones because of their weaker financial position."

It is pertinent to mention here that last week, the State Bank of Pakistan (SBP) had further slashed its key interest rate by two per cent (200 basis points) to nine per cent to "cushion the impact of the Coronavirus shock on growth and employment, including by easing borrowing costs and the debt service burden of households and firms, while also maintaining financial stability."

Over the past one month, the SBP key interest rate has seen a cumulative reduction of 4.25 per cent.