‘Joint efforts can boost credit access for micro and SMEs’

LAHORE: Special Assistant to Prime Minister for Industries and Production Haroon Akhtar Khan has underscored the need for collaborative efforts across country to boost credit access for micro, small and medium enterprises, as per SME development vision of the Prime Minister Mian Shehbaz Sharif.

Presiding over a joint meeting of the key financial institutions, the SAPM directed the Small and Medium Enterprises Development Authority (SMEDA) to collaborate with all provincial governments, banks and others institutions to expedite access to finance for SMEs, especially in underserved areas of Balochistan, Khyber Pakhtunkhwa and Azad Jammu & Kashmir. The meeting was attended by representatives of a number of the national and provincial financial organizations including State Bank of Pakistan (SBP) Pakistan Banking Association (PBA), Bank of Punjab (BOP), Bank of Khyber (BOK), Sindh Bank (SB), NBP, HBL and Punjab Small Industries Corporation (PSIC) in coordination with the Small and Medium Enterprises Development Authority (SMEDA).

SAPM said, “SMEDA must get involved in engagements and collaboration with all stakeholders to help more and more entrepreneurs’ access credit and scale up their businesses. It should form a working group to synchronize efforts through training and connectivity,” he added.

Lauding the Punjab government’s initiatives under the Asaan Karobar Finance Scheme, he asked other provinces to replicate the financing model and increase the number of beneficiaries in the country. He acknowledged that other banks were also doing a commendable job by providing finance to SMEs through various mechanisms.

On this occasion, CEO SMEDA Nadia Jahangir Seth highlighted her organization’s role in promoting access to finance as an important pillar of its Business Plan and expressed resolve to expedite efforts to improve the SME finance ecosystem.

“We will keep on working with provincial governments, the Pakistan Banks Association and other institutions to enable the SMEs for avail credit facilities for business expansion,” she said adding that SMEDA’s focus would be on designing feasible program for SME financing.

Earlier, the Punjab Small Industries Corporation (PSIC) gave a presentation on CM Punjab’s Asaan Karobar Finance Scheme under which a record Rs100 billion have been disbursed among entrepreneurs in less than one year.

Officials said the scheme, which has been launched through Bank of Punjab, had proved a success. They said more than 110,000 people were beneficiaries and almost 50pc of borrowers were from low-income groups.

A representative of State Bank of Pakistan gave an overview of SME financing in Punjab, KP and Sindh. He said Sindh Bank had a portfolio of Rs10 billion in SME financing but unfortunately there was no significant scheme in KP and Balochistan.

He said there is a need to enhance coverage in underserved areas. He said the Bank of Philippines and Bangladesh have commended Pakistan’s SME facilities and expressed desire to study the models and replicate in their countries.

Bank of Punjab senior officer Asif Riaz suggested that SMEDA should join the SME Forum to participate in collaborative efforts.

The representatives of other financial institutions also apprised the SAPM with their financial products focused on SMEs and assured to further enhance SME financing to boost the SME development ecosystem in coordination with SMEDA as per the Prime Minister’s vision.