Expedite setting up of Exim Bank, demands UNISAME

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged Tariq Bajwa, the governor of State Bank of Pakistan (SBP) to expedite the setting up of Exim Bank and revitalizing the SME Bank promised and  long overdue for the much-needed boost to the SME sector

UNISAME President Zulfikar Thaver said the sector is facing tough times due to the slow trade and heavy imports under free trade agreements and also due to the downside in international buying of Pakistani goods and in some cases due to the high cost of production.

The SME sector needs the facility of prompt discounting of bills and pre-shipment and post shipment finance.

Commercial banks have shown interest in SME financing due to the role played by SBP but nevertheless, the sector needs an SME specific bank and an internationally linked Exim Bank to facilitate specific requirements of the sector for collective buying of raw materials from worldwide sources.

Thaver said as a member of the technical committee of the National Financial Inclusion Strategy (NFIS), he will raise the urgent need for the SME specific bank and also Exim Bank for global facilities for promotion of trade with third world countries at the scheduled meeting of the NFIS Technical Committee on July 31 at SBP.

Among other requirements of the sector, the Union chief said, he would emphasize increasing scope and size of the Small and Medium Enterprises Development Authority (SMEDA) and its placement under the cabinet division. He called for setting up of SME development fund, and “Pay as you earn scheme” for entrepreneurs. The implementation of the SME financing policy recently launched and coordination with the newly formed steering committee by the Ministry of Industries and Production.

UNISAME expressed thanks for the decision to set up the Centre of Excellence (CoE) at National Institute of Banking and Finance (NIBAF) under the SBP.

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