State Bank of Pakistan (SBP) Governor Reza Baqir on Tuesday said that SBP Aasan Finance Scheme (SAAF) will be a game-changer in enhancing access to finance for small and medium enterprises (SMEs) as it addresses the long outstanding challenge of lack of collateral faced by SMEs.
He was speaking about the various initiatives of SBP to facilitate the businesses, particularly the SMEs at Multan Chamber of Commerce and Industry (MCCI).
The governor highlighted that with the objective of stimulating sustainable economic growth of the country, the central bank has been taking various initiatives to facilitate the business community.
Some of the major initiatives include the introduction of a unique collateral-free loan scheme for SMEs; SME Asaan Finance (SAAF), SBP’s concessionary refinance schemes for different sectors, measures taken to combat the Covid-19 effects, digitization of banking systems and persuasion of banks to enhance financing to the business community especially priority sectors.
During his meeting with the business community, Dr Baqir said that the Covid-19 pandemic was an unprecedented catastrophe that affected the economic life of individuals and businesses nationally and internationally. He highlighted that the proactive policy response by SBP during the pandemic especially refinance schemes such as TERF and Rozgar not only provided a breathing space to employees of the business community but also laid down sound foundations for medium to long term industrialization in the country.
The governor said that to provide affordable housing to the masses, SBP is working rigorously on the implementation of the governments’ Mera Pakistan Mera Ghar (MPMG) scheme. This facility allows individuals, who are constructing or buying a new house for the first time, to avail bank financing at subsidized and affordable mark-up rates.
SBP has taken various measures to make the regulatory environment more conducive for the growth of this sector. A complaint resolution mechanism is also available through an online complaint management system for MPMG since January 2021.
He suggested that MCCI can play an active role in creating awareness among employees of its members to avail financing under MPMG. The chamber’s president pledged his commitment in this regard.
Source: Pro Pakistani