The Lahore Chamber of Commerce and Industry on Thursday organised the SME Finance and Banking Expo with the objective of providing small and medium enterprises (SMEs) direct access to banking facilities, financing schemes and financial products.
The day-long expo witnessed participation from almost all major commercial banks, Islamic banks and financial institutions of the country.
Various banks set up stalls where a large number of LCCI members visited and obtained detailed information about SME-focused financing products, refinance schemes, credit facilities, Islamic finance models and digital banking solutions.
LCCI President Faheem Ur Rehman Saigol, State Bank of Pakistan Executive Director Syed Basit Aly, SBP Chief Manager Tariq Riaz, and LCCI office bearers inaugurated the event.
Syed Basit Aly said that the SME sector is a top priority for both the government and the SBP. He stated that the SBP is working closely with banks to remove obstacles in SME financing and has introduced new, principle-based prudential regulations to facilitate banks in this area.
He explained that Pakistan’s banking system has traditionally been collateral-based with limited risk-taking, but the SBP is working to gradually shift financing toward cash-flow and business-model-based lending. He added that the SBP is also developing viable products in collaboration with international financial institutions.
Praising the role of women entrepreneurs, Syed Basit Aly said that women’s inclusion is essential not only for economic growth but also for social development. He informed that under the “Banking on Equality” policy, targets for women’s inclusion have been successfully achieved, and work is now underway on “Banking on Equality Vision 2.0” with even higher goals.
Faheem Ur Rehman Saigol said that developed and emerging economies such as China, Vietnam, Bangladesh, Japan and Taiwan achieved economic growth through SMEs, whereas Pakistan has not yet fully moved in this direction. He said that the expo is a serious effort to bridge the gap between banks and businesses by providing direct awareness about financing products, loan schemes and banking services. He added that many good schemes exist, but due to a lack of awareness, businesses are unable to benefit from them, which makes such forums extremely important.
LCCI President highlighted that private sector financing in Pakistan is very low compared to regional countries. He said that if Islamic banks increase their share in SME financing fourfold, total financing could reach PKR 1,000 billion, creating strong positive effects on the economy.
He pointed out that strict collateral requirements are a major obstacle, as many small businesses have strong business potential and markets but lack acceptable guarantees. He urged the SBP and banks to focus on cash flow, business potential and market value, and to expand collateral-free or low-collateral financing schemes.
He also emphasised special support for women-owned businesses, stating that women form more than half of Pakistan’s population and have strong potential to contribute to the economy. However, they face serious difficulties in accessing bank financing. He called on banks to introduce special desks, simpler procedures and guidance-based financing programs for women entrepreneurs.
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