UNISAME URGES SBP TO WIDEN SCOPE OF MICRO FINANCE BANKS TO INCLUDE SMALL
President UNISAME Zulfikar Thaver said the commercial banks are inclined to finance the medium enterprises as the medium sized enterprises have joined the mainstream but the small sized enterprises are deprived as their requirements of finance are not met by the commercial banks and the micro finance banks are not in a position to finance them beyond half a million. The small enterprises are neither here nor there and remain deprived of financing due to their size and nature of businesses. Many agro based units doing value addition to produce items fall within the definition of the small enterprises.
Thaver invited the attention of the SBP to the need of increasing the financing limit of micro finance banks to enable them meet the requirements of the small enterprises who need finance of more than half million. All over the world the micro finance banks are catering to the small enterprises and in some third world countries the micro finance banks are doing excellent promotion of small enterprises by financing them and enabling individuals and families to earn their livelihood.
He pointed out that amount of half million finance is insufficient as the small entrepreneur cannot even buy a single income generation vehicle in half a million nor buy any sufficient amount of raw material or machinery.
He said that some micro finance banks are inclined to finance the small enterprises up to one million rupees and accommodate the small enterprises who are unfortunately not included in the financing agenda of the commercial banks and not even included in the agenda of the micro finance bank due to their financing need which exceeds half a million rupees.
UNISAME advocating the cause of its small members urged the SBP to comprehend the requirements of the small entrepreneurs and give them access to finance by the micro finance banks by widening the radius of the micro finance banks.
Over a period of time the prices of raw material, packing material, machinery and equipment, transport vehicles has increased like other factors of production and it is very important to facilitate the micro and small enterprises according to current values to enable them run their businesses satisfactorily.
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