Banks asked to support small businesses

Islamabad: Chairman of the Apna Microfinance Bank Limited (AMBL) Mian Shahid on Sunday said that Small and Medium Enterprises (SMEs) will be given preference in provision of credit.

He said that he will try best to ensure the uninterrupted flow of finances to the critical SME sector without which economy cannot be revived.

Talking to female entrepreneurs, he said that the role of microfinance banks remains crucial to ensure unobstructed flow of financial resources to the SME sector which is engine of economic growth for country.

Shahid said that the current level of finance and access of SMEs to banking services remains unsatisfactory which calls for serious initiatives.

SME sector represents over 90 per cent of all enterprises, employs some 75 per cent of the non-agricultural workforce and contributes 30 per cent to the GDP, he said, adding that it plays important role in poverty alleviation, and equitable resource distribution.

SMEs’ growth potential for employment, income generation, and poverty reduction remains mostly untapped in Pakistan. Only 2.5 million people are recorded as active borrowers of microfinance which is discouraging, he said.