KARACHI: The Union of Small and Medium Enterprises (Unisame ) will urge the Executive Director State Bank of Pakistan (SBP ) Syed Samar Hasnain to impose upon the commercial banks to facilitate the micro and small to medium sized sector to enable them import and export without subjecting them to mortgage of immovable property at a meeting at SBP on 18th September 2015.
President Unisame Zulfikar Thaver will invite the attention of the executive director SBP to the lack of risk management expertise of the commercial banks who are not inclined to finance the small enterprises without collateral.
Thaver said he would raise the issue at a meeting convened by SBP of the SME Consultants Group (SMECG) tomorrow and urge the SBP that the small enterprises can best be supported/financed by the micro finance banks (MFBs) if lending restrictions over Rs 500000 is removed and set at a higher amount of around Rs 2 millions; capping exposure of enterprise loans at 40% of outstanding portfolio is also removed; and financing decisions are based not on loan securitization but cashflow analysis.
He said he would also advocate the need for lowering bank charges, letter of credit margins, reducing mark up rate on Export Refinance (ERF), discounting facilities for bills of low rating banks and third world countries.
Thaver said he would stress the need for strengthening the SME Bank, expediting the Exim Bank and the setting up of Venture Capital. Union experts have underlined the urgent need for facilitating the sector to meet the challenges faced by the sector due to global slowdown.