The Governor of the State Bank of Pakistan, Dr. Reza Baqir, attended a check distribution ceremony to mark the first set of loans disbursed by Meezan Bank under the SME Asaan Finance (SAAF) scheme during his visit to the Multan Chamber of Commerce and Industry (MCCI). Addressing the audience, the Governor highlighted the State Bank of Pakistan’s efforts to provide an enabling regulatory framework for SME financing, ii) build market infrastructure and create awareness, and iii) enhance the capacity of bankers and small businesses. Entrepreneurs and small businesses should take full advantage of the programme to set up and upgrade their facilities, he said. Small and medium-sized enterprises (SMEs) now have access to collateral-free financing from banks thanks to SAAF. In order to meet their long-term capital expenditure and short-term working capital needs, SMEs can apply for collateral-free financing of up to Rs 10 million at the concessionary end-user rate of up to 9% p.a. It also provides banks with a reasonable spread so that they can invest in their processes, systems, human resources, and technology so that they can continue collateral-free financing on a sustainable basis when the SAAF scheme ends. Refinance is provided by the SBP, while risk coverage of up to 60% is provided by the Government of Pakistan in the SAAF facility. During a competitive bidding process, SBP launched the SAAF programme on August 16, 2021, and eight banks were chosen. SAAF will begin disbursement from early next month for seven other banks including Meezan Banc, Habib Bank, United Bank, The Punjab Bank, JS Bank, The Bank of Khyber, and Allied Bank Ltd. Under the SAAF programme, small and medium-sized enterprises (SMEs) can apply for collateral-free financing from any of the eight participating banks. The SBP website https://www.sbp.org.pk/smefd/circulars/2021/C9.htm has more information on the SAAF programme.