Unisame welcomes SME Bank delisting from privatisation list

KARACHI: The Union of Small and Medium Enterprises (Unisame) has appreciated the Cabinet Committee on Privatisation (CCoP) decision to approve the delisting of the SME Bank from the privatisation list, a statement said.

The union welcomed the decision to explore the possibilities for merging the SME Bank with the National Bank of Pakistan (NBP) or any other bank, it added.

Unisame President Zulfikar Thaver said that the sector is very happy that they would benefit from a dedicated bank, which could cater to their requirements.

However, he urged the CCoP not to merge it with the NBP or any other bank, as the SME Bank will lose its identity and would not remain an SME Bank anymore.

The sector needs an SME-specific bank dedicated to serve the small and medium entrepreneurs and cater to the specific requirements of the sector, Thaver added.

The Unisame Council said that the SMEs need bridge financing and finance for imports, exports, trading and franchising.

Other requirements are for commercial property leasing for shops, warehouses and factories. Besides, they also need “pay as you earn” schemes for plant and machinery.

The sector expects that the SME Bank would develop an SME credit card and facilitate the entrepreneurs, vendors, SME farmers and the suppliers of farm inputs, which the commercial banks are not inclined to due to the lack of risk management expertise.

The members urged the State Bank of Pakistan (SBP) to ensure that the funds are injected to enable the SME Bank 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. There is also a need for the government to allow the bank to offer its shares to the public to create its capital.

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