SME Credit Advisory Committee to review declining trend in SME financing

Karachi: The 4th meeting of SME Credit Advisory Committee (SMECAC) is scheduled to be held on 4th January at State Bank of Pakistan
(SBP) to review and check the declining trend in SME financing, banks’ response, effective participation of banks in SBP schemes particularly Credit Guarantee Scheme (CGS), Refinance Schemes for modernization of SMEs and other schemes.

Governor SBP Yasin Anwar will chair the meeting having representation from all concerned stakeholders including financial institutions, Union of Small and Medium Enterprises (UNISAME) and the Small and Medium Enterprises Development Authority (SMEDA). President UNISAME Zulfikar Thaver has urged the governor SBP to include in the agenda the lack of interest of commercial banks in financing the sector and lack of risk management expertise of the banks.

He complained to the governor SBP that commercial banks are avoiding financing the SMEs under the SBP schemes and although the SBP is providing funds for various schemes for financing, the banks are not interested to take risk and declining the applicants except they mortgage immovable property that too in selected urban areas only.

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