ISLAMABAD: The Islamabad Chamber of Commerce & Industry in collaboration with USAID SMEA, SBP and Bank Al-Falah organized a workshop on SME financing that highlighted the importance of enhancing the financial inclusion of SMEs for better economic future of Pakistan. USAID SMEA, SBP and Bank Alfalah representatives gave detailed presentations on financing products for SMEs.
Speaking at the occasion, Ms. Anum Imtiaz Illahi, SME Finance Specialist of USAID SMEA said that his organization has launched a five year SME Activity (SMEA) project of US$35 million that aimed to improve the financial and operational performance of SMEs, enhance their competitiveness, foster entrepreneurship, create new sales opportunities, increase revenue of SMEs and support women-led businesses. She said that the project would target 6 SME sectors including hospitality, ICT and other emerging sectors.
Zohair Ismail, Regional Manager Credit, Bank Alfalah said that his bank offered many attractive products to SMEs. He said Alfalah Karobar Finance scheme offered Rs.0.5-30 million to SMEs for running finance, LC, LG and other import/export related facilities. The financing was available against mortgage of residential/commercial property. Alfalah Milkiat Finance offered long-term financing to SMEs. Alfalah Merchant Line offered up to Rs.15 million to meet the working capital needs of SMEs. Alflah Fleet Finance offered Rs.0.3-Rs.500 million while Alfalah Bill and Cash scheme offered Rs.1-50 million to meet the various financing needs of SMEs. He said his bank was also providing many non-financial services to improve the financial inclusion of SMEs.
Imad Kasir, Assistant Chief Manager, SBP gave an overview of SBP’s policies and schemes for promotion of SME financing in Pakistan. He said SMEs share in private sector credit was just 6-8 percent and SBP has targeted to increase it up to 17 percent by 2020 to enhance credit availability for SMEs. He said SBP has devised a national financial inclusion strategy that would focus on capacity building of banks, DFIs and SMEs. He said SBP offered low cost financing for SMEs through banks & DFIs at 6% rate with the aim to increase the financial inclusion of SMEs and help them in growth and expansion.
Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that SMEs were the backbone of our economy as they represented over 90 percent of total business entities in Pakistan and stressed that government should focus on creating enabling environments and providing easy financing options to SMEs so that they could play more effective role in the sustainable economic development of Pakistan.
