Farrukh says PM determine to promote SMEs

Minister for Information and Broadcasting

Minister of State for Information and Broadcasting Farrukh Habib on Tuesday said Prime Minister Imran Khan was determined to promote Small and Medium Enterprises (SMEs) to improve the economic indicators which are already on positive trajectory.

In a tweet, he said SMEs were an important component of economy and promotion of SMEs would strengthen the economy and create job opportunities.

State Bank of Pakistan (SBP), he said has launched a scheme to provide collateral-free financing of up to Rs10 million to SMEs.

The government would provide risk coverage of 40 to 60 percent to the selected banks against losses depending on the size of loans, he added.

“It is expected that this initiative will enable sustainable growth in SME finances, as it aims to address the core issues facing this important sector,” the minister remarked.

He said according to Small and Medium Enterprise Development Agency (SMEDA) the SMEs were believed to contribute 40 percent to the Gross Domestic Product and 25 percent to exports of emerging economies.—APP

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