Unisame seeks ‘Pay As You Earn Scheme’

• Unisame President Zulfikar Thaver said that in view of the judicial rulings.
• The obvious inclination of the different segments of the society.
• Council members expressed the need for modernisation.

KARACHI: The Union of Small and Medium Enterprises (Unisame) has urged State Bank of Pakistan (SBP) Governor Jameel Ahmed to consider “Pay As You Earn Scheme” for the Small and Medium Enterprises (SMEs) under the asset-based Islamic financing, which is becoming popular and reduce equity margin to the lowest possible level and facilitate the SMEs, a statement said on Saturday.

Unisame President Zulfikar Thaver said that in view of the judicial rulings and the obvious inclination of the different segments of the society towards Islamic financing, it is suggested that the Islamic banks develop a product and facilitate the sector to install plants, machinery, equipment and other requirements for projects and businesses under “”Pay As You Earn Scheme” under the asset-based financing.

Thaver said since the financing would be secured under the asset-based financing and the asset itself would be mortgaged with the lending bank and tracker fixed on the asset would serve as an alarm for any removal of the plant, machinery or equipment without the no objection of the lending bank.

The Unisame Council members expressed the need for modernisation of plants for productivity and improving the benchmark to substitute imported goods in view of the foreign exchange crunch.

They said the scheme with lower equity of the entrepreneurs would be an ideal promotion and development of the sector.

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