LAHORE: State Bank of Pakistan (SBP) is considering indicative targets for banks, review their performance against these targets after a certain period, and may consider formulation of regulation to impose mandatory targets if it does not receive favorable results.
SBP Deputy Governor Dr. Saeed Ahmad stated this, while addressing the inaugural session of 9th Pakistan SME Forum 2015 organized by SHAMROCK Conferences International at a local hotel on Tuesday.
This year’s theme was ‘Fostering SME Access to Finance & Innovative Technologies.’
Later talking to media, Dr. Saeed Ahmed said that SBP was taking effective measures to end speculations in the backdrop of surge in value of US dollar. Keeping a vigilant eye on the financial affairs of the country was the prime responsibility of the central bank, however the surge in dollar would have an impact on Pakistan due to the phenomenon of market forces, as trade with Asian and other international markets was being done through US dollar.
During the forum, the prominent practitioners and stakeholders of the SME (Small and Medium Enterprise) sector in Pakistan urged the government to address issues pertaining to the serious decline of the SME sector in Pakistan, considering its poor performance in the current fiscal year.
In his opening remarks, the SHAMROCK Convener & Chairman Mr. Menin Rodrigues opined, ‘The intervention of the ministries of Industries, Commerce, Agriculture and Finance, in revitalizing the SME sector through prudent steps is necessary; as much the support of the State Bank of Pakistan, SMEDA and the Trade Development Authority of Pakistan for a sustained and collaborative effort to uplift the SME sector.’ While, a comprehensive countrywide registration of SMEs is of vital importance, he added.
Chairing the first session on Encouraging Lending by Commercial Banks and Financial Institutions, the SBP Executive Director Samar Hasnain said that SBP was playing a decisive and collaborative role in addressing the challenges in the SME sector. He stressed upon the stakeholders to think positively to promote SME Finance.
Chairing the second session on Empowering Entrepreneurs to take the Next Big Steps, the UNISAME Secretary General Sajid Naqvi highlighted the urgent need for government and regulatory bodies to take prompt notice of the long-standing issues of the sector, which he said was preventing entrepreneurs and the micro-small outfits in moving forward. The economies of scale, technology deployment and lack of training at all levels were critical elements, he added.
In the panel discussion on Why is the SME Sector not making an Impact, what are the impediments?, the Small and Medium Enterprises Development Authority (SMEDA) CEO Mohammad Alamgir Choudhry said that the Authority had gone an extra mile to be a helpful facilitator to SMEs who approach it for assistance. He called for amalgamation of scattered activities under one umbrella so that issues can be managed and result achieved.
