Pakistani SMEs need more support

Yaseen Anwar, governor of the State Bank of Pakistan (SBP), has stressed upon the banks to develop an effective SME strategy by focusing on important areas for the sustainable growth of the SME sector, Online International News Network reports.

Presiding over the fourth meeting of the SME Credit Advisory Committee at SBP, Karachion on Wednesday, he observed that a sustainable approach towards the development of the SME sector would require a more active role from all stakeholders, specifically the banks in improving the availability of finance and other banking services for SMEs.

According to The News International, Anwar said the growth of the SME sector is critical to the country's prospects of increasing employment, supporting productivity through greater business innovation and reducing income inequalities.

“This is very important, as the SMEs account for the vast majority of the business establishments in Pakistan (over 98%) and account for over 78% of the non-agricultural employment in the country,” he said.

Business Recorder quotes Anwar as saying: "SBP on its part stands ready to support banks wishing to increase lending to this important sector with appropriate policy interventions", and added that the bank has revamped its Credit Guarantee Scheme and various refinancing schemes with some encouraging results.

He, however, noted with concern that the overall utilisation of these schemes is still below the expected levels, which needs to be looked into seriously by participating banks.