UNISAME RECOMMENDS ISLAMIC BANKING FOR MICRO TO MEDIUM SECTOR

The Union of Small and Medium Enterprises (UNISAME) recommended Islamic banking for the micro to medium sized sector to resolve the issues of access to finance of the sector inclusive of the farm sector.
President UNISAME Zulfikar Thaver assisted by Ali Sabih convener UNISAME informed the Institute of Business Administration (IBA) team led by Dr Ahmed Junaid and the Small and Medium Enterprises Development Authority (SMEDA) provincial chief Mukesh Kumar and Zeeshan Ahmad at SMEDA Karachi office that the sector expects that the Islamic banking principles and practices are implemented in letter and spirit to enable access to finance and facilitated on profit and loss sharing basis under various products.
Thaver emphasized the need for joint ventures, commercial property leasing under pay as you earn schemes and financing for imports without margin, financing for exports to third world countries, financing for start ups and project financing on profit sharing basis.
He called upon the experts to develop the MSME credit cards to enable the micro to medium sized entrepreneurs avail finance promptly.
He said there is need for micro finance Islamic banks to finance the hawkers, micro entrepreneurs and home based units who are subjected to heavy mark up by the microfinance banks due to the fact that MFBs are borrowing themselves at heavy mark up plus their expenses are high due to small disbursements and their recovery.
He lamented that the small enterprises are a misfit as neither the MFBs are accommodating them due to their credit limit of Rs half million nor the commercial banks are inclined to finance them. It is therefore very necessary that the Islamic banks come in to play an important role.

Posted in: Press Releases