MULTAN: All Pakistan Bedsheets and Upholstery Manufacturers Association (APBUMA) held awareness session for Small Medium Enterprises to promote awareness on permissible loans related to Islamic banking and export finance schemes designed for products of the exports. The project attracted active participation from State Bank of Pakistan (SBP) and Meezan Bank Limited of Multan.
Assistant Director, SBP Multan Ms. Kiran Amjad presented an insightful analysis of the schemes designed to boost exports and support SMEs. He highlighted the growth of Islamic banking in Pakistan and the commitment of SBP to facilitate this growth. Drawing attention to future prospects, he assured that SBP was providing all necessary support to promote Islamic banking in the country.
Mufti Sakiber Sheed of Meezan Bank gave an in-depth understanding of the basic Shariah principles guiding Islamic banking. He explained how Islamic banking offers a viable alternative to the traditional interest-based system, which aims to promote capital flows and boost industrial and commercial sectors He expressed confidence in the continued growth of Islamic banking in Pakistan in.
Muhammad Aqeel Nawaz, Unit Manager, Meezan Bank Limited, elaborated on the various Shariah-compliant facilities available with the bank. He explained the process of achieving Islamic export renancing under SBP’s scheme, which is currently available at a discounted rate of 19%. Nawaz introduced a new export finance policy, the Rupee Based Discount (RBD), which provides pre- and post-export discounts at a low rate of 2-3%; 180 days.
APBUMA Chairman Syed Muhammad Asim Shah, in his closing remarks, thanked the representatives from SBP and Meezan Bank. He underscored the essential position of capital provision in commercial and commercial growth, noting that financing below Islamic ideas guarantees economic equity within society. Shah called for less difficult get admission to banking finance for the SME region to put the foundation for sustainable economic development. He highlighted the severe contrast in SME financing in Pakistan, which stands at 7% of overall banking finance, compared to 25% in Bangladesh and 18% in India.
Despite the SBP’s goal of 17% SME financing by means of 2023, Shah acknowledged the substantial gap that stays. He recommended the brand new RBD scheme for supplying export financing at up to three%, but expressed sadness that the SME area turned into neglected in favor of the corporate region. Shah entreated the SBP Governor to make certain that as a minimum 25% of the RBD scheme’s financing is allotted especially for SMEs. He additionally advocated additional economic sources be protected inside the 2024-25 price range and called for monthly changes based on utility volumes.
In end, Shah reaffirmed APBUMA’s dedication to supporting the SBP’s projects to sell SMEs. He awarded honary shields to Kiran Amjad, Mufti Saqib Rashid, and Muhammad Aqeel Nawaz on behalf of the affiliation. The seminar changed into attended by brilliant figures which include former Chairman Syed Muhammad Ahsan Shah, Executive Committee contributors Khawaja Muhammad Qasim and Ghalib Haider Qureshi, and other participants which includes Khawaja Muhammad Farooq and Sheikh Muhammad Ahmed.
