The Islamic modes of financing can be more beneficial to the small and medium enterprises (SMEs), said Professor Iqbal M. Khan, Advisor to the Crescent Standard Investment Bank (CSIB). While addressing a one-day seminar on the topic of "Exploring Financing Opportunities for Small Businesses", jointly organised by the Small and Medium Enterprise Development Authority (Smeda) and CSIB. From Smeda Syed Mubashar Masood Bokhari, Manager Legal Services and Mukesh Kumar, Manager Smeda, Punjab addressed the seminar. Whereas from CSIB, Roohi Raees, Head Corporate Credit and Tauqeer Ahmad, Head SME Credit of CSIB apprised the participants about financing opportunities available with their bank for small business.
Professor Iqbal M. Khan, who is also Deputy Secretary General of ADFIMI, an Association of the Muslim countries patronised by Islamic Development Bank (IDB) said that the leasing facility to be extended by various banks and DFIs through "Musharaqa" and "Modaraba" were in fact a way of partnership and Islam encouraged this type of financing.
The institutions that finance equipment or machinery through this mode becomes business partner to an SME, he said, adding that SMEs should utilise these sort of financing facilities available with a number of DFIs in Pakistan.
Roohi Raees and Tauqeer Ahmad highlighted the policies of their bank with regard to financing facilities to the small business. They pointed out that a small business having 10 employees on aboard with Rs 2 million paid up capital and a balance sheet up to Rs 10 million could avail of the credit facility with CSIB from Rs 100,000 to Rs 2.5 million.
Syed Mubashar Masood apprised the participants about the newly offered service to settle the legal problems and issues to be confronted by SMEs during their course of business activities. Mukesh Kumar gave a presentation on Smeda's overall services designed for SMEs.
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