Promotion of SMEs top on SBP agenda: Tariq Bajwa

APP - Governor State Bank of Pakistan (SBP) Tariq Bajwa has said that adequate efforts were being made for the promotion of SME sector of the country.

Addressing a seminar on "SME Banking Products and Projects", jointly arranged by Sialkot Chamber of Commerce and Industry (SCCI) and the Institute of Bankers Pakistan(IBP) held here Thursday evening at SCCI, he said that SME sector was playing an instrumental role in strengthening the national economy not only but also providing employment opportunities to a large number of workers.

Tariq further said that three point SBP initiatives would support SME financing including improving regulatory framework through revising prudential regulations, strengthening secured transactions framework and introduction of SME targets, market development through SME supportive subsidized refinance schemes, risk coverage scheme, Islamic SME financing, cluster survey and non-financial advisory service and improving capacity building and awareness creation of bankers and SMEs.

The SBP Governor said that under National Financial Inclusion (NFIS) and strategic direction of SBP, SME sector had been identified as one of the key priority areas.

In line with the strategic direction of SBP key benchmarks to be achieved by 2020, like increase SME share from existing 8 per cent of private sector credit to 17 per cent and to increase number of borrowers from existing 174,000 to 500,000, he said

In order to achieve these objectives a policy had been prepared for the promotion of SME finance (Conventional and Islamic in Pakistan he disclosed.

He added that there were nine pillars of the policy which include improving regulatory framework, up-scaling of micro finance banks, risk mitigation strategy, simplified procedures for SMEs, programme base lending and value chain financing, capacity building and awareness creation, hand-holding of SMEs and leverage technology and simplification of taxation regime.

Earlier, President Sialkot Chamber of Commerce and Industry, Zahid Latif Malik presented the address of welcome and highlighted the problems of the business community.