By our correspondent
KARACHI: Industrialists and traders in Pakistan have voiced their appreciation for the State Bank of Pakistan (SBP) following its recent initiatives aimed at fostering economic growth through loan schemes tailored for Small and Medium-sized Enterprises (SMEs), agricultural financing, and commercial vehicle loans. These measures are seen as pivotal in stimulating business activity and addressing the financial needs of small traders, a segment often overlooked in broader economic strategies.
While expressing gratitude for these efforts, business leaders urged the SBP to prioritize the enforcement of banking ethics and adherence to a code of conduct within financial institutions. They emphasized that an emphasis on staff training could help create a more supportive and accessible banking environment, enabling entrepreneurs to work more comfortably with banks. There is a strong call for banks to launch official awareness campaigns to ensure that more entrepreneurs can fully leverage these new loan facilities.
The industrialists believe that enhancing the welfare and development of small traders is crucial for invigorating economic activities across the country. However, concerns were raised regarding the obstacles that traders face when trying to open new bank accounts. Many have reported frustrating experiences, including repeated visits to banks, only to find branch managers absent and encountering unhelpful staff members. Such challenges not only hinder individual business growth but also reflect systemic inefficiencies that need urgent addressing.
According to a recent SBP notification, financial institutions—including both commercial and Shariah-compliant banks—are now authorized to offer loans of up to Rs25 million for small enterprises and Rs200 million for medium-sized businesses, with a repayment period extending to five years. The overarching goal of these initiatives is to double the outstanding financing for SMEs to Rs1.10 trillion over the next five years through a risk coverage scheme designed to mitigate lending risks.
