[:en]BY ASIM SHAHZAD
LAHORE: The Small and Medium Enterprises Development Authority (SMEDA), as per direction of the 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 today at SMEDA head office. The MOU was signed by Mr. Socrat Aman Rana, Chief Executive Officer of SMEDA and Mr. Hussain Ali Haider, Country Head-SME Division Askari Bank Limited at a ceremony held at SMEDA head office. The Signing Ceremony was also attended by Mr. Ashfaq Ahmad, GM Business and Sector Development Services, Ms. Farah Yasir, DGM-B&SD, Mr. Sheharyar Tahir, DGM-External Relations and Mr. 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 Mr. Awais Tahir, Senior Credit Head SME.
CEO SMEDA Mr. Socrat Aman Rana, while addressing the signing ceremony, 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.
Mr. 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 Helpdesks 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 Helpdesks, 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.
The Askari Bank, as per the MOU, will notify SMEDA of its priority sectors and respective lending criteria and may also refer its clients to SMEDA for availing facilities provided by SMEDA apart from disseminating SMEDA’s capacity building services through its branch network to SME walk-ins.
According to the MOU, SMEDA and Askari Bank will jointly identify a mechanism for facilitating SMEs with access to Government Financing Schemes and other financial products and services, for SMEs, announced from time to time. Both the organizations will nominate contact persons to coordinate activities under this MoU. In addition, it has been mutually agreed that SMEDA and Askari Bank Limited will work jointly for promotion of business opportunities for the small and medium entrepreneurs, within the perimeter of their work mandate.
It is notable that SMEDA has planned also to take other banks into loop for entering into MOUs for making SMEs bankable and commercially viable for having credits. CEO SMEDA Mr. Socrat Aman Rana, moving on fast track in this regard is going to have next meeting with Bank of Panjab tomorrow.[:]