Smeda plans to join hands with banks to facilitate SMEs

05 Jun, 2004

Small and Medium Enterprise Development Authority (Smeda) has planned to join hands with the banks so as to work jointly for removing the problems being faced by SME sector in getting finances.
"We will be having arrangements with almost every bank individually with the objectives that each bank should set up SME specific division and Smeda will train its staff of these specific divisions," said Smeda Chief Executive Officer, Shahab Khawaja while talking to Business Recorder.
Khawaja was of the view that this initiative on the part of Smeda would help the banks to devise special funding programmes for the development and uplift of SME sector. Smeda in collaboration with the Institute of Bankers Pakistan (IBP) will devise training programmes for the bankers, he added.
Throwing light on the background of this initiative, he said that SMEs were facing various problems in getting finances from the banks, which were reluctant due to various issues like security, collateral and high cost of transactions. He added that a team of Smeda had given a presentation to the Bankers in a bid to convince them for facilitating SME sector.
Earlier it had been planned that Smeda had an agreement with Pakistan Bankers Association (PBA), but later it was decided that such an arrangement be made on individual basis, he said.
Talking about the 'Help Desk' and walk in services being offered by the Smeda to help SMEs, he said that till date they have entertained 9000 queries and visitors while its website also had so far 16.5 million hits.
He said that different feasibility and pre-feasibility reports and information regarding various sectors was available on this website.

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