'Prudential Regulations for SMEs next month'

KARACHI (October 15 2003): The State Bank of Pakistan (SBP) will notify Prudential Regulations for Small and Medium enterprises (SMEs) next month.

This was stated by the Executive Director, SBP, Mansoor-ur-Rehman Khan, while chairing export banking policy committee meeting at SBP head office here on Tuesday.

He said that these regulations would cover all aspects of the SME sector, including collateral, definition of SME, clean financing with and without collateral.

The convener of Union of Small and Medium Enterprises (Unisame), Zulfikar Thaver, pointed out that export refinance facility was not benefiting the SME sector due to collateral problem. He said that SMEs have to pay around 11 percent instead of 3 percent due to collateral issue.

Mansoor assured Unisame that SBP was reviewing and improving this scheme to ensure that exporters, specially SMEs, should get maximum benefits.

Upon a request of Unisame, the SBP Executive Director also assured them that SME Bank would get commercial banking licence to further facilitate the SME sector.

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