SBP Governor urges business community, banks to ensure smooth implementation of SME finance policy

KARACHI: State Bank of Pakistan (SBP) Governor Tariq Bajwa the business community and banks to ensure smooth implementation of the recently announced SME finance policy by the Prime Minister of Pakistan Shahid Khaqan Abbasi.

While chairing a meeting held at SBP Banking Services Corporation (BSC) Sukkur, Governor SBP said, “I believe that with the active support of the business community and banking sector, SME finance policy recently launched by the Prime Minister will achieve its desired objectives”. The meeting was attended by the presidents, vice presidents and general secretaries of chambers of commerce and trade associations of Sukkur, Ghotki, Shikarpur, Larkana, Kashmore, Qambar, Jacobabad and Naushahro Feroze. Regional heads of all commercial, Islamic and microfinance banks operating in these areas were also present.

Highlighting the consultative process adopted while formulating SME finance policy, the governor underscored the significance of its smooth implementation and successful execution. He further said that effective communication of this policy at the grassroots level will require awareness sessions at different locations throughout Pakistan. He went on to add that SBP will conduct outreach programs to create awareness in collaboration with chambers regarding SME finance policy.

Bajwa emphasised upon the importance of key priority sectors in the economic development of the country. He explained that agriculture, SME and low-cost housing remain top priority sectors for the SBP. He elaborated the importance of SME sector and explained that recently launched policy for promotion of SME finance comprises of measures which will help in boosting SME financing. These measures include improving regulatory framework, upscaling of microfinance banks, risk mitigation strategy, simplified procedures for SME financing, program based lending and value chain financing, capacity building and awareness creation, handholding of SMEs, leveraging technology and simplification of taxation regime.

The representatives from chambers and trade bodies appreciated the efforts of SBP and assured their full cooperation and effective implementation of this policy. SBP (BSC) Managing Director Qasim Nawaz and Executive Director Syed Samar Hasnain along with senior SBP officials were also present on the occasion.