State Bank of Pakistan officials have emphasised the need for strengthening the organisational framework of SME associations by establishing a national federation which would articulate and represent the SMEs priorities at the regional and sectoral levels.
The need of a national federation of SME associations was highlighted during a meeting between SBP officials and members of Union of Small & Medium Enterprises ( Unisame) on Friday. The meeting also underlined the significant potential of expanding bank lending to the SME sector and emphasised the widespread positive impact of removing existing constraints in this regard.
President of the union, Zulfikar Thaver, observed that besides ensuring economic benefits in terms of faster growth, increased exports and expanded employment opportunities, higher bank financing would also lower credit costs for SMEs and expand lending business for the banks.
He assured of full support and co-operation in this regard and expressed hope that the government would continue to develop supportive policies in consultation with the stakeholders of SME sector.
He along with other Unisame participants thanked the SBP for its very positive role in the development and growth of the sector and particularly appreciated its efforts for developing a regulatory framework for SMEs as well as establishing quantitative criteria for classifying businesses in terms of capital employed, turnover, employee strength.
They further observed that compliance by commercial banks on credit flows according to revised reporting and reporting formats alone would ensure increased attention to the financing needs of small and medium businesses.