SBP urged not to privatize SME Bank and accelerate setting up of Eximp Bank

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the State Bank of Pakistan to expedite the establishment of Eximp Bank and also not to privatise the SME Bank and to strengthen it instead for the benefit of the majority sector, says a Press release.
UNISAME president Zulfikar Thaver said most of the countries of the world have their Eximp Bank and Pakistani exporters and importers both big and small are feeling the absence of a facilitating intermediary bank which could issue guarantees and enable secured transactions under credit guarantee. This would prove ideal for exports to third world countries and bring about remarkable increase in exports.
Secondly Thaver urged the SBP not to privatise the SME Bank and to inject funds in it and make it an ideal SME Bank true to its name. The SME sector is the majority sector and the SME Bank is the only SME Bank and if it is merged with any other bank it will lose its identity.
If it is privatised it will be governed by the private sector investors who may behave like other commercial banks whereas if it continues to remain as a public sector bank it will follow the agenda of specifically catering to the sector.
He said if SBP is not inclined to inject funds then it may allow the SME Bank to raise its own capital from the investors by floating shares.
UNISAME experts said now that the economy is again getting on its feet due to good financial management of the pandemic by the SBP and facilities offered to big and small businessmen, the SBP needs to take proactive steps to announce the opening of Eximp Bank and restructuring of SME Bank without loss of time.