KARACHIi: The Union of Small and Medium Enterprises (UNISAME) attracted the attention of Yasin Anwar governor State Bank of Pakistan (SBP) over the lack of interest of commercial banks in financing the SME sector due to their involvement in financing the state run institutions
President UNISAME Zulfikar Thaver pointed out that commercial banks are supposed to finance the private sector as their first option and then finance the semi government institutions and lastly the institutions led by the government when there is excess liquidity.
On the contrary it is strange that most of the banks are resorting to finance the state run institutions as their first option and financing the private sector secondarily defeating the aims and objects clause of their memorandum of associations.
He attracted the attention of the governor that this avoidance of the private sector will injure the economy as it will give a setback to the private sector.
Secondly he pointed out that the banks are financing the government for their spending which might be detrimental in the long run. He further stated that for a fruitful outcome banks should rather spend on developmental purposes.
The union urged the governor to arrange for separate funds for the government through other schemes and advise the banks to focus on their primary agenda that is financing commerce and industrial sector of the country which would in turn help the rupee to retain its value.