State Bank Of Pakistan, Karachi Chamber Of Commerce And Industry Focal Group On SMEs Formed

State Bank of Pakistan (SBP), and Karachi Chamber of Commerce and Industry (KCCI) on Monday decided to form a focal group for jointly working on promotion of small and medium enterprises sector, which is the backbone for an economy

KARACHI, (UrduPoint / Pakistan Point News - 18th Nov, 2019 ):State Bank of Pakistan (SBP), and Karachi Chamber of Commerce and Industry (KCCI) on Monday decided to form a focal group for jointly working on promotion of small and medium enterprises sector, which is the backbone for an economy.

KCCI President will nominate five members to join hands with SBP's economic and finance team for the uplift and growth of this very important economic sector, which has not been extended the required support and facilitation in the past.

The focal group was proposed by SBP Governor Syed Reza Baqir in response to the concerns raised by KCCI members during his visit to the chamber. The Governor was accompanied by a SBP team of experts representing different departments/services of State Bank including Chief Economist Dr. Saeed Ahmed, the Managing Director of SBP's Banking Service Corporation and Chief Spokesman Abid Qamar.

On KCCI side, the prominent were President Agha Shahab Ahmed Khan, Chairman, Businessmen Group in KCCI and former president Siraj Kassam Teli.

SBP Governor, on pointation by KCCI President, assured that the Central Bank was ready to issue Businessmen Credit Cards for the business community of the country.

State Bank wants fast growth in businesses by providing maximum facilities and incentives," he re-assured and emphasized on regular interaction between SBP and Karachi Chamber for better financing policies and credit products.

He said the economic situation of the country was improving and main indicators were very positive. The exchange rate was sustainable; rather it has started to come down. This showed good sentiments and that the pressures on the Central Bank were over.

Responding to KCCI demand for reducing the policy (interest) rate, he assured that SBP would go for the same as soon as the inflation rate starts coming down.

"Rest assured and trust us, we are moving gradually. We will cut down interest rate when inflation drops," he remarked.

He emphasized on the creating awareness among the business community about SMEs regulations and financing mechanism so that small and medium entrepreneurs could better avail the SMEs financing facilities aimed at fast growth of this sector. SMEs also need proper infrastructure, he said.

He discussed with them new SMEs financing scheme launched by State Bank at the low mark-up of 6 percent and easy terms.

He also offered to hold a seminar on SMEs for the members of Karachi Chamber.

He asked KCCI leadership to upload the SBP business financing schemes especially SMEs on KCCI website for the awareness of the members.

On this occasion, the Governor informed that SBP had come up with a special credit scheme for small women entrepreneurs. Hence, the Central Bank would not charge any interest and the lending banks would charge only five percent . The women intending to start their businesses would have great support under this scheme. The limit of the credit is up to Rs 1.5 million. This would prove a milestone for economic empowerment of women in the country.

To a demand of KCCI for re-opening of banks on Saturdays to facilitate the trade and industry, he said ," we will think over it," About e-banking and digitalization of banking sector, SBP Chief replied that State Bank along with World Bank has recently formed a strategy for fast promotion of the modern banking. And, he added, the details were on SBP's website.

SBP experts team assisted the Governor in responding queries by the members of Karachi Chamber.

Earlier, KCCI President Agha Shahab Ahmed Khan and Chairman BMG, Siraj Kassam Teli brief the Governor and his team about various financing and regulatory issues confronting trade and industry.