Promotion of SMEs top on SBP agenda: Tariq Bajwa

SIALKOT, Mar 23 (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
fiance 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.