The Small and Medium Enterprises Development Authority (SMEDA), as per direction of Federal Minister Industries Rana Tanveer Hussain and Federal Minister Finance Senator Muhammad Aurangzeb, has launched a move to make the SMEs bankable for easy and increased access to finance.
As a first step in this regard, SMEDA inked a memorandum of understanding (MoU) with Askari Bank Limited at SMEDA Head Office on Wednesday. The MoU was signed by Socrat Aman Rana, Chief Executive Officer of SMEDA and Hussain Ali Haider, Country Head-SME Division Askari Bank Limited on behalf of their respective sides. The signing ceremony was also attended by Ashfaq Ahmad, GM Business and Sector Development Services, Ms. Farah Yasir, DGM-B&SD, Sheharyar Tahir, DGM-External Relations and Usman, Assistant Manager Financial Services from SMEDA. Whereas, from Askari Bank, the Country Head SME Division was accompanied by Syed Nauman Sajid, Regional Head SME Central and Awais Tahir, Senior Credit Head SME. CEO SMEDA Socrat Aman Rana said that the Government of Pakistan, top from Prime Minister to all economy related ministers, especially the Minister of Industries Rana Tanveer Hussain and Minister Finance Senator Muhammad Aurangzeb were committed to make SMEs bankable for enhancing SME access to government financing schemes and specialized financial products. He said that despite higher significance of SMEs to job creation, innovation and economic diversification in Pakistan, private sector lending to SMEs had declined from 8.5% to 6% over the past five years, with the total outstanding portfolio stagnant at PKR 543 billion. He was confident that the plan to be evolved by SMEDA, in collaboration with banking industry would significantly increase private sector lending to SMEs.
Hussain Ali Haider, Country Head SME Division of Askari Bank said, we shall be able to turn the table for enhancing SME lending in collaboration with SMEDA.
According to the MoU with Askari Bank, SMEDA will utilize its Regional Offices and Help Desks for information dissemination and awareness creation of concessionary Government Financing Schemes and all Askari Bank SME Products, besides extending its capacity building initiatives for SMEs in business development, such as; accounting and bookkeeping, marketing, technical advice, etc. SMEDA will facilitate SMEs, approaching its Help Desks, in the application process for Government Financing Schemes and all Askari Bank SME Products. SMEDA will also share research studies and reports with Askari Bank of subject matters that are of interest to the bank.