CCOP URGED TO ENABLE SME BANK TO STAND ON ITS OWN FEET NOT MERGING IT WITH NBP

The Union of Small and Medium Enterprises (UNISAME) welcomed the decision of the Cabinet Committee on Privatisation (CCOP) which approved the delisting of SME Bank from the privatisation list and explored possibilities for merging it with the National Bank of Pakistan (NBP) or any other bank.
President UNISAME Zulfikar Thaver expressed appreciation of the decision and said the sector is very happy that they would benefit from a dedicated bank who could cater to their requirements.
Thaver urged the CCOP not to merge it with the National Bank of Pakistan or any other bank as the SME Bank if merged, it will lose its identity and it would not remain an SME Bank anymore.
He said the sector needs an SME specific bank dedicated to serve the small to medium entrepreneurs and cater to the specific requirements of the sector.
The UNISAME Council (UC) said the SMEs need bridge financing and also finance for imports, exports, trading, franchising, the other requirements are for commercial property leasing for shops, warehouses and factories. Besides these they also need pay as you earn schemes for plant and machinery.
The sector expects that the SME Bank would develope an SME credit card and facilitate the entrepreneurs, vendors, SME farmers and the suppliers of farm inputs which the commercial banks are not inclined for due to lack of risk management expertise.
The UC urged the State Bank of Pakistan (SBP) to ensure that funds are injected to enable the SME Bank to carry out its agenda smoothly without any impediment. The government also needs to return the properties and funds to the bank which it had taken away.
UC also urged the government to allow the bank to offer its shares to the public to create its capital.

Posted in: Press Releases