SME Finance Annual Re
Infrastructure Housing & SME Finance Department
State Bank of Pakistan
SME Finance Annual Re
view
2016
Infrastructure Housing & SME Finance Department
State Bank of Pakistan
1
2016
Infrastructure Housing & SME Finance Department
SME Finance Annual Review
2016
Team Leader:
Syed Basit Aly [email protected]
Members:
Prepared by:
Mr. Adil Jamshaid [email protected]
Reviewed by:
Mr. Imran Ahmad [email protected]
Mr. Akhtiar Ahmed [email protected]
For feedback/queries: [email protected]
DISCLAIMER
Whilst every effort has been made to ensure the quality and accuracy of the data/information provided
in this document, the State Bank of Pakistan makes no warranty concerning the contents of this review.
The contents and comments are provided for educational purposes as well as for general information
only. In no event will the State Bank of Pakistan, its affiliates or other stakeholders be liable for any
mistakes.
SME Finance Annual Review
2016
1. Executive Summary ............................................................................................................................. 1
2. SME Financing Analysis ....................................................................................................................... 2
2.1 SME Finance: ................................................................................................................................. 2
2.2 Facility-wise SME Finance: ............................................................................................................ 3
2.3 Sector-wise composition of SME Finance: ..................................................................................... 4
2.4 Banking Groups-wise distribution of SME Finance: ....................................................................... 4
2.5 Average Loan Size: ........................................................................................................................ 5
2.6 Loan size-wise Review: .................................................................................................................. 5
2.7 Agri SME Outstanding Financing: .................................................................................................. 6
2.8 Outstanding Financing under SBP Refinance Facilities for SMEs: .................................................. 6
2.9 SME Financing by Islamic Banking Institutions and Divisions: ....................................................... 6
2.10 Performance of Banks & DFIs against SME Finance Targets: ....................................................... 7
2.11 Prime Minister’s Youth Business Loans Scheme: ......................................................................... 8
3. SBP initiatives for the promotion of SME Finance during 2016 ............................................................ 8
3.1 Prudential Regulations-Revised: .................................................................................................... 8
3.2 Credit Guarantee Scheme for Small and Rural Enterprises: ........................................................... 8
3.3 Mark up Subsidy and Guarantee Facility for the Rice Husking Mills in Sindh: ................................. 9
3.4 SME Cluster Surveys: ..................................................................................................................... 9
3.5 Secured Transaction Reform Framework – Legal Framework: ....................................................... 9
3.6 SME Dissemination Workshops/Melas and Capacity Building Sessions: ........................................ 9
3.7 Islamic SME Financing: ................................................................................................................ 10
4. ANNEXURE ....................................................................................................................................... 11
1
1. Executive Summary
Small and Medium enterprises play a vital role in economic growth in both developed and developing
countries due to their significant contribution in terms of output, exports and employment. Taking into
account the enormous economic potential of the SME sector, State Bank of Pakistan (SBP) has
undertaken several initiatives for promotion of SME Finance. Some of these include issuance of
separate Prudential Regulations (PRs) for Small Enterprises (SEs) and Medium Enterprises (MEs),
efforts for putting in place an Electronic Secured Transactions Collateral Registry in the country to
facilitate SME’s access to finance by using movable assets as collateral, implementation of SME specific
subsidized and affordable financing schemes like credit guarantee scheme and refinance schemes for
modernization of SMEs, mark up subsidy cum guarantee facility for Rice Mills in Sindh, monitoring and
supervision of banks financing under PM Youth Business Loans Scheme, SME cluster surveys and
capacity development measures for banks and Development Finance Institutions (DFIs).
SME financing of banks and DFIs stood at Rs. 401 billion as on 31
st
December, 2016 showing an increase
of Rs 96 billion or around 32 percent when compared with SME financing portfolio of Rs 305 billion as
on 31
st
December, 2015. The number of SME borrowers reached 177,595 recording an increase of 12
percent on Y-o-Y basis. Facility wise break up shows that working capital facility constituted 67 percent
of outstanding SME financing followed by fixed investment and trade finance with shares of 22 percent
and 11 percent respectively.
Domestic private banks held 67 percent share while public sector banks held 25 percent share in total
SME financing. The remaining share in total SME financing was held by Islamic banks and Islamic
divisions of conventional banks, foreign banks and DFIs.
SME Finance Annual Review
2016
2
267
273
288
305
401
3144
3332
3579
3864
4359
8.5%
8.1%
8%
7..9%
9.1%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
1000
2000
3000
4000
5000
6000
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Percentatge
Rs. billion
Figure 1: SME Outstanding Vs Industry Outstanding
Finance(Rs.billion)
Outstanding SME Finance
Private Sector Financing
Percentage of SME in Pvt Sector Financing
2. SME Financing Analysis
2.1 SME Finance:
SME finance outstanding portfolio recorded a growth of 50.5 percent over 5 year period (2012-16).
Figure 1 shows that the percentage share of outstanding SME finance in total private sector financing
stood at 9.1 percent at the end of December 2016 in comparison to 7.9 percent as of December 2015.
SME financing of banks and
Development Financial Institutions
(DFIs) reached to Rs 401 billion as of
31
st
December 2016 from Rs 305
billion in December 2015, registering
a growth of 31.5 percent on Y-o-Y
basis. A part of the improvement in
SME financing in the year 2016 may
be attributed to the introduction of
SME finance targets for the bank/DFIs
and issuance of revised Prudential
Regulations for SME financing in May,
2016. Table 1 shows the trend of SME
financing over the 5 years period.
Table 1: SME Financing Trend (Rs. billion)
Category
Dec
-
12
Dec
-
13
Dec
-
14
Dec
-
15
Dec
-
16
Outstanding
SME Finance
266.5
1
272.5
3
287.8
8
305.09
401
.2
8
Private Sector Financing
3
,
1
44.23
3
,
3
3
1
.
54
3
,
579.18
3
,
864.49
4
,
3
5
9
.18
% of SME Share in Total Private Sector
Financing
8.5
%
8
.
1
%
8.0%
7.9
%
9
.
1
%
SME NPLs as percentage of Outstanding SME
Finance
3
5.8%
3
1.8%
30
.2%
2
5.3%
20
.3%
SME Borrowers
132,167
136,940
134,521
15
7
,
8
87
177,595
SME NPLs ratio which was 35.8
percent in Dec
percent at the end of December,
2016.
recovery efforts by financial institutions were the main contributing factors in decline of SME NPLs
ratio.
2.2 Facility-wise SME F
inance
The available facilities of finance
to SMEs are
period. As far as facility-
wise distribution of borrowers is concerned
availed fixed investment finance facility,
capital facility.
Dec
-
12
Dec
-
13
Dec
-
14
Dec
9%
10%
13%
9%
80% 78%
74%
67%
10% 12%
13%
23%
Figure 2 : Facility wise composition of SME
Financing(Percentage)
Trade Finance Working Capital
SME Finance Annual Review
percent in Dec
ember 2012,
declined significantly and reduced
2016.
Increase in the overall financing to SME
sector
recovery efforts by financial institutions were the main contributing factors in decline of SME NPLs
inance
:
to SMEs are
broadly categorised as working c
apital,
and trade f
inance. Among these
categories,
working capital facility constituted
67 percent of total
outstanding SME
at the end of December, 2016
investment
and trade finance
percent and 11 percent
respectively
shows the
share of working capital has
followed a
declining trend over
it decreased from 80 percent in Dec
2012 to 67 percent in Dec
share of fixed investment finance and trade
finance witnessed i
ncrease during the same
wise distribution of borrowers is concerned
, 53 percent of
total SME
availed fixed investment finance facility,
while 44 percent
of total SME borrowers availed working
Dec
-
15
Dec
-
16
9%
11%
67%
67%
23%
22%
Figure 2 : Facility wise composition of SME
Financing(Percentage)
Fixed Investment
SME Finance Annual Review
2016
3
declined significantly and reduced
to 20.3
sector
and improved
recovery efforts by financial institutions were the main contributing factors in decline of SME NPLs
fixed investment
inance. Among these
three
working capital facility constituted
outstanding SME
financing
at the end of December, 2016
.Fixed
and trade finance
had share of 22
respectively
. Figure 2
share of working capital has
declining trend over
five years since
it decreased from 80 percent in Dec
ember
ember
2016. The
share of fixed investment finance and trade
ncrease during the same
total SME
borrowers
of total SME borrowers availed working
2.3 Sector-
wise composition
while during this period the
average
financing was 20 percent. Figure
3
distribution of SME financing
from
since the share of loans to t
rading
December 2016; while
the share of loans to s
increased during the same period.
As regards SME borrowers’ sector
-
borrowers were from services sector, 43 percent were from trading sector and
manufacturing sector.
2.4 Banking Groups-
wise distribution of SME Finance:
Dec 12 Dec 13 Dec 14
Dec 15
38%
40%
43%
15%
17%
17%
47%
43%
40%
Figure 3 Sectoral Distribution of SME
Finance(Percentage)
Manufacturing
Services
67.0%
0.0%
5.4%
Figure 4: Share of Banks/DFIs in SME Financing
as of December 31, 2016
Public Sector
Commercial Banks
Specialized Banks
Domestic Private
Bank
Foreign Banks
SME Finance Annual Review
wise composition
of SME Finance:
SMEs are generally c
lassified
sectors viz. trading,
m
services SMEs.
At the end of Dec
2016, manufacturing
SMEs
percent share of financing, followed by
trading SMEs at 33
percent and service
SMEs at 23 percent
respectively
Averaging out sector-
wise composition of
SME finance
over the five
reflects that
an average of
the total SME finance
was availed
of the m
anufacturing and
average
share of the s
ervice centered SMEs in the total outstanding SME
3
also shows that between 2012 and 2016,
there is a shift
from
trading sector to manufacturing and s
ervice sectors respectively
rading
SMEs decreased from 47 percent
in 2012 to 33 percent at the end of
the share of loans to s
ervices sector SMEs and m
anufacturing sector
-
wise
distribution is concerned, the data shows that 47 percent SME
borrowers were from services sector, 43 percent were from trading sector and
10 percent
wise distribution of SME Finance:
Figure 4
provides a snapshot of
groups-wise share
in total outstanding
financing as of December
31, 2016
generally remained the same over the
years. Domestic private
banks
share of 67 percent
in total outstanding SME
finance showing
an increase of 3 percent
o-Y basis. Public sector
Dec 15
Dec 16
35%
44%
28%
23%
37%
33%
Figure 3 Sectoral Distribution of SME
Finance(Percentage)
Services
Trading
24.9%
2.5%
0.2%
Figure 4: Share of Banks/DFIs in SME Financing
as of December 31, 2016
SME Finance Annual Review
2016
4
lassified
in three
m
anufacturing and
At the end of Dec
ember,
SMEs
availed 44
percent share of financing, followed by
percent and service
s
respectively
(Figure 3).
wise composition of
over the five
years time span
an average of
40 percent of
was availed
by each
anufacturing and
trading SMEs
ervice centered SMEs in the total outstanding SME
there is a shift
in sectoral
ervice sectors respectively
in 2012 to 33 percent at the end of
anufacturing sector
SMEs
distribution is concerned, the data shows that 47 percent SME
10 percent
were from
provides a snapshot of
banking
in total outstanding
SME
31, 2016
, which has
generally remained the same over the
last 5
banks
had the largest
in total outstanding SME
an increase of 3 percent
on Y-
commercial
banks’
share in total SME finance was
25
remaining share
in total SME financing
conventional
banks, foreign banks and DFIs
2.5 Average Loan Size:
As on December 31, 2016,
under SME financing
Development Finance Institutions (DFIs)
average loan size of Rs 62.9
million.
2.6 Loan size-wise Review:
majority share of 65 percent in
total
Table
2
: Bank wise Average loan Size & percentage share
of borrowers(December-2016)
Institutions
Average
loan Size
(Rs million)
Public Sector Banks
1
Specialized Banks
0.3
Domestic Private Banks
6.7
Islamic Banks
4.1
Foreign Banks
11.5
DFIs
62.9
Loans over
Rs 30 Mn &
upto Rs 50
Mn
13%
Loans over
Rs 50 Mn
22%
Figure 5: Loan Size Wise Distribution
as of Dec 16
SME Finance Annual Review
25
percent
recording a decline of 4 percent on Y
in total SME financing
was distributed among Islamic banks
and Islamic divisions of
banks, foreign banks and DFIs
.
under SME financing
, average loan size was Rs 2.2 million.
Table
banking sector-
wise average loan size.
The disbursements show that
sector banks’
average SME loan size
was Rs 1 million and these banks served
53 percent of
total SME
indicates that small
e
major
target sector
banks.
Average loan size of domestic
private banks was Rs 6.7 million.
Development Finance Institutions (DFIs)
,
which have the lowest number of borrowers
million.
SME loans size-
wise distribution as of
December
31, 2016 reflects that
5 million had 29 percent
share in total SME
financing (Figure 5) while
million and
up to Rs 30 million had a share of 36
percent. SME loans of
over Rs 30 million
to Rs 50 million
had a share of 13 percent
22 percent share was
held by loans
million. Loans
up to Rs 30 million
total
SME outstanding finance.
: Bank wise Average loan Size & percentage share
Average
loan Size
(Rs million)
Percentage
of borrowers
53%
21%
22%
3%
0.6%
62.9
0.4%
Loans upto
Rs 5 Mn
29%
Loans over
Rs 5 M &
upto Rs 30
Mn
36%
Figure 5: Loan Size Wise Distribution
SME Finance Annual Review
2016
5
recording a decline of 4 percent on Y
-o-Y basis. The
and Islamic divisions of
Table
2 shows
wise average loan size.
The disbursements show that
public
average SME loan size
was Rs 1 million and these banks served
total SME
borrowers. This
e
nterprises are the
target sector
of public sector
Average loan size of domestic
private banks was Rs 6.7 million.
The
which have the lowest number of borrowers
, have the highest
wise distribution as of
31, 2016 reflects that
loans up to Rs
share in total SME
loans over Rs 5
up to Rs 30 million had a share of 36
over Rs 30 million
and up
had a share of 13 percent
while
held by loans
over Rs 50
up to Rs 30 million
held the
SME Finance Annual Review
2016
6
2.7 Agri SME Outstanding Financing:
Out of the total SME outstanding finance, loans to Agri SMEs were recorded at Rs.27.68 billion as of
December 31, 2016 registering growth of
20% on Y-o-Y basis (Table 3). Number of
Agri SME borrowers also showed growth of
19% on Y-o-Y basis; whereas Agri SME
financing NPLs declined by 30.5 percent on
Y-o-Y basis.
2.8 Outstanding Financing under SBP Refinance Facilities for SMEs:
In order to encourage SMEs to modernize their units for producing quality products and to meet their
power shortages, State Bank of Pakistan introduced Refinance Facility for modernization of SMEs in
2009. Under this scheme, the outstanding financing stood at Rs.65 million as of December 31, 2016 as
shown in Table 4. Financing
Facility for Storage of Agriculture
Produce, another refinance
scheme, was also introduced by
SBP to encourage private sector
to establish silos, warehouses and cold storages in order to enhance their storage capacity. The
outstanding finance under FFSAP stood at Rs.1,757 million in December 16 as compared to Rs.1,766
million in December 15.
2.9 SME Financing by Islamic Banking Institutions and Divisions:
The contribution of Islamic Banking Institutions towards SME sector followed an upward trend from
2012 to 2016 as evident from Table 5. Islamic SME finance increased from Rs 20.83 billion in December
2015 to Rs 29.03 billion in December 2016 showing a significant growth of 39 percent on Y-o-Y basis.
The reason for this significant
increase in Islamic SME finance
was the achievement of targets
set-forth for the banks by SBP in
January 2016. As of December 31,
2016, among Islamic Banks,
Meezan Bank Limited had the highest share of 36 percent in total outstanding Islamic SME finance
Table
3
: Agri SME Financing (Rs billion)
Category
Dec
-
15
Dec
-
16
Outstanding Finance to Agri
SMEs
23.11
27.68
No. of borrowers
6,575
7,851
Non Performing
loans
-
Agri SME
3.02
2.1
Table
4
:Outstanding Financing under SBP Refinance Facilities
for SMEs (Rs million)
Category
Dec
-
15
Dec
-
16
Refinance facility for modernization of SMEs
81
65
Financing facility for Storage of Agriculture
Produce
1,766
1,757
Table
5
: Islamic Banks &IBDs SME
Outstanding (Rs billion)
Category
Dec
-
12
Dec
-
13
Dec
-
14
Dec
-
15
Dec
-
16
IBDs
4.25
11.35
9.05
9.84
7.76
Islamic
Banks
5.99
5.42
6.09
10.99
21.27
Total
10.24
16.77
15.14
20.83
29.03
Islamic
7%
Figure 6: Islamic SME Finance viz
conventional SME Finance as of Dec
followed by Albaraka Bank
and Dubai Islamic
percent respectively. In I
slamic SME financing,
conventional banks had a share of 73 percent and 27 percent respectively.
years.
2.10 Performance of
Banks & DFIs
SBP introduced targets for SME finance for banks/DFIs with effect from January 1, 2016. The targets
were based on size of the banks
/DFIs
portfolio and their
capacity to achieve the required targets. Further, banks
following minimum measures which will facilitate
1.
SME financing set up should be separated from commercial financing departments/divisions.
2.
There should be at least one dedicated SME finance specialist placed in each of the Credi
Administration Department and Risk
It can be seen from Table 6 that
public sector
Islamic Banks
achieved 112 percent of the assigned targets
Table
: Performance of Banks/ DFIs and Targets (Rs
Category
SME Finance
Target Dec, 2016
Islamic Banks
21
.
40
Pub. Sector Banks
87
Pvt. Sector Banks
277
.
20
DFI
1
.
20
Other
inst
.
w
/o
targets
11
.
06
Totals
397
.
86
SME Finance Annual Review
Conventional
93%
Figure 6: Islamic SME Finance viz
-a-viz
conventional SME Finance as of Dec
-2016
and Dubai Islamic
Bank Pakistan Limited with shares of
29 percent and 18
slamic SME financing,
Islamic Banks and Islamic B
anking
conventional banks had a share of 73 percent and 27 percent respectively.
From Figure 6, it is evident
banks had a share of 93 percent
banking institutions held share of
total SME financing portfolio by the end of
December 2016.
With substantial
of
Islamic banking divisions of big
conventional
banks, the share of Islamic SME
finance is likely to improve in the coming
Banks & DFIs
against SME Finance Targets:
SBP introduced targets for SME finance for banks/DFIs with effect from January 1, 2016. The targets
/DFIs
in terms of their
assets, branch network, existing SME finance
capacity to achieve the required targets. Further, banks
were
following minimum measures which will facilitate
them in a
chieving the assigned target smoothly:
SME financing set up should be separated from commercial financing departments/divisions.
There should be at least one dedicated SME finance specialist placed in each of the Credi
Administration Department and Risk
Management Department.
public sector
banks achieved 117 percent
of the assigned targets
achieved 112 percent of the assigned targets
.
The
growth in public
sec
tor banks was primarily
led by National Bank of
Pakistan and
Punjab.
note that SME financing
targets
were
32 banks and DFIs
at Rs.
: Performance of Banks/ DFIs and Targets (Rs
billion
)
SME Finance
Target Dec, 2016
SME Finance
O/S (Dec-16)
%
Achieve
ment
23
.
9
1
112%
101
.
3
6
117%
265
.
1
2
96%
0.
88
73%
10
.
01
401
.
2
8
SME Finance Annual Review
2016
7
29 percent and 18
anking
Divisions of
that conventional
banks had a share of 93 percent
and Islamic
banking institutions held share of
7 percent in
total SME financing portfolio by the end of
With substantial
contribution
Islamic banking divisions of big
banks, the share of Islamic SME
finance is likely to improve in the coming
SBP introduced targets for SME finance for banks/DFIs with effect from January 1, 2016. The targets
assets, branch network, existing SME finance
were
advised to take
chieving the assigned target smoothly:
SME financing set up should be separated from commercial financing departments/divisions.
There should be at least one dedicated SME finance specialist placed in each of the Credi
t
of the assigned targets
and
growth in public
tor banks was primarily
led by National Bank of
Pakistan and
the Bank of
Punjab.
It is pertinent to
note that SME financing
were
assigned to
32 banks and DFIs
to reach
398 billion by
SME Finance Annual Review
2016
8
December 31, 2016. The assigned targets for 2016 were fully achieved.
2.11 Prime Minister’s Youth Business Loans Scheme:
The Government of Pakistan, being cognizant of the important role played by youth and small
businesses in the economic development, introduced Prime Minister’s Youth Business Loans Scheme in
2013. The main objective of
this scheme is to provide
unemployed youth
opportunities of financial
independence through self-
employment. Under the
scheme, small businesses are extended loans up to Rs 2,000,000 at a service charge of 6 percent.
Number of PMYBL applications received by the banks working as executing agencies under the scheme
reached 74,461 at the end of December 2016 showing growth of 17 percent on Y-o-Y basis. Of the total
applications received under the Scheme, 86 percent were from male applicants while the share of
female applicants was at 14 percent. Of 74,461 applications received since 2013, number of sanctioned
applications was 21,137 as on December 31, 2016 showing an increase of 34 percent on Y-o-Y basis.
Since the launch of the Scheme, loans worth Rs 17,706 million had been disbursed to 17,691 borrowers’
upto December 31, 2016 showing an increase of 176 percent on Y-o-Y basis (Table 7).
3. SBP initiatives for the promotion of SME Finance during 2016
State Bank of Pakistan has taken following key measures during 2016 for promotion of SME finance in
the country.
3.1 Prudential Regulations-Revised:
Provision of enabling regulatory environment for SME financing is a core activity of SBP. IH&SMEFD
issued amendments in SME PRs in May 2016 to align them further with changing market dynamics.
3.2 Credit Guarantee Scheme for Small and Rural Enterprises:
SBP launched Credit Guarantee Scheme (CGS) for Small and Rural Enterprises in March 2010 in
collaboration with UK’s Department for International Development (DFID). Government of Pakistan
has also contributed Rs 300 million. Total funds available under the Scheme are Rs 3.7 billion. The
Scheme aims to encourage financing towards fresh and collateral deficient borrowers. Under the
Scheme, risk coverage of up to 60 percent is provided for credit losses of financing banks on their
Table
7
: Prime Minister Youth Business Loans
(Rs million)
Category
Dec
-
15
Dec
-
16
Y
-
o
-
Y Change
Total Applications Received
63,691
74,461
17
%
No. of Loans Sanctioned
15,788
21,137
34%
No. of Loans Disbursed
6,921
17,691
156%
Amount of Loans
D
isbursed
6,409
17,706
176%
SME Finance Annual Review
2016
9
financing to small, micro and rural enterprises. The extent of risk coverage is linked with the level of
loan collateralization. The lower the loan collateralization, the higher the risk coverage extended under
the Scheme Moreover 60 percent risk coverage is provided against financing to borrowers ,in particular
women, start-up businesses and small, rural and micro enterprises operating in the under-served areas
of the country with respect to SME financing.. More than 20 banks and microfinance banks are
participating in the Scheme. To date, loans of Rs 18,387 million have been sanctioned under the
Scheme and around 25,860 borrowers have been facilitated through it.
3.3 Mark up Subsidy and Guarantee Facility for the Rice Husking Mills in Sindh:
State Bank in collaboration with Sindh Enterprise Development Fund (SEDF), Government of Sindh
launched Mark up Subsidy and Guarantee Facility for the Rice Husking Mills in Sindh for promoting,
modernization and up-gradation of rice mills in Sindh in 2013. The end-user mark up rate for borrowers
is 2.75%. In addition to 2.75%, the financing bank receives an additional 1.5% paid by SEDF.SBP’s
refinance rate of 3.25% is also borne by SEDF. Other than mark-up subsidy, SEDF also provides risk
coverage of 30% against the loans extended under the Scheme.
3.4 SME Cluster Surveys:
Availability of reliable and credible data on SMEs is a pre-requisite for banks to align their financing
strategies and design SME specific financing products and services. In view of the importance of reliable
sectoral data, DFID UK under FIP provided funding and SBP arranged research studies on key SME sub-
sectors in collaboration with renowned institutions like IFC and LUMS. So far 21 SME sub-sectors have been
completed out of which 10 research reports were finalized in 2016 and widely disseminated through training
sessions. These reports have also been placed on SBP website for benefit and use by the stakeholders.
3.5 Secured Transaction Reform Framework – Legal Framework:
Financial Institutions (Secured Transactions) Act 2016 has been passed by the Parliament. This law will help
create charge on movable assets of small and unincorporated entities thereby providing a window of access
to finance for SMEs. SBP is facilitating GOP in establishment of electronic secured transactions registry.
World Bank is providing consulting services for setting up Electronic Registry.
3.6 SME Dissemination Workshops/Melas and Capacity Building Sessions:
SBP has collaborated with IBP & NIBAF in designing and delivery of different training programs for various
layers of SME banking functions. Further, SBP in collaboration with SMEDA organized seven interactive
sessions for banks and SMEs in major regional hubs across the country. Workshop on SME Supply Chain with
IFC was organized in Karachi in November 2016. Moreover, SBP in collaboration with SMEDA, banks and
SME Finance Annual Review
2016
10
DFIs organized an Expo/Seminar for Promotion of SME financing on December 19, 2016. The Seminar/expo
was well attended by regulators, bankers, trade associations, entrepreneurs, academia and representatives
of IFC, USAID & chambers, etc.
3.7 Islamic SME Financing:
Realizing the role that Islamic Banking Institutions can play in fulfilling the SMEs financing needs, SBP
advised IBIs to increase their penetration in SME market. In this respect, during 2016, SBP held
meetings with individual banks. Besides, IBIs were also advised to formulate and submit to SBP their
Islamic SME financing strategies which they previously lacked. State Bank further assisted the banks by
devising a ‘Strategy Format’ for all the banks. Close coordination is being maintained with IBIs with the
objective of attracting greater focus of the IBIs towards SME financing.
SME Finance Annual Review
2016
11
4. ANNEXURE
Useful links for SME Finance related areas
1. SME Cluster profiling http://www.sbp.org.pk/departments/ihfd-ifc.htm
2. SME Finance Prudential Regulations http://www.sbp.org.pk/publications/prudential/PRs-SMEs.pdf
3. Credit Guarantee Scheme for Small and Rural Enterprises http://www.sbp.org.pk/smefd/circulars/2010/C1.htm
4. Credit Guarantee and Risk Sharing Scheme for Rice Husking Mills in Sindh
www.sbp.org.pk/smefd/circulars/2013/C6.htm
5. Refinance Facility for Modernization of SMEs http://www.sbp.org.pk/incentives/ltf-eop/ConsolidatedScheme.pdf
6. Scheme for Financing Power Plants using Renewable Energy http://www.sbp.org.pk/smefd/circulars/2009/C19.htm
7. Extension in renewable energy Circular: http://www.sbp.org.pk/smefd/circulars/2014/CL7.htm
8. Prime Minister Youth Business Loans Scheme http://www.sbp.org.pk/smefd/circulars/2013/C10.htm
9. Development Finance Review http://www.sbp.org.pk/SME/DFG.htm
10. Incentives for Exporters http://www.sbp.org.pk/incentives/index.asp
11. Quarterly SME Finance Reports http://www.sbp.org.pk/departments/ihfd-qdr.htm
12. SME Finance Related Training Programs http://www.sbp.org.pk/departments/ihfd-smefp.htm