The SHAMROCK Conferences International with the patronage of the Union of Small and Medium Enterprises (UNISAME) is hosting the annual Micro-Finance (MF) and SME Conference on 23rd November, 2017 at a local hotel in Islamabad.
under the theme “NURTURING ENTREPRENEURSHIP AND FINANCIAL-INCLUSION TO EMPOWER THE MASSES”.
Menin Rodriguez chairman of Shamrock Conferences said the MSME forum enjoys the patronage of the Small and Medium Enterprises Development Authority ( SMEDA ) and Pakistan Micro finance Network (PMN), and the cooperation of State Bank of Pakistan (SBP), Chambers of Commerce, IFC-World Bank, Commercial Banks and Micro Finance institutions. International donor agencies, social-sector development agencies, poverty-alleviation NGO’s and experts will also be participating in the informative deliberations to share their wisdom with a large number of stakeholders.
President UNISAME Zulfikar Thaver said Shamrock has stood like a rock behind UNISAME and enhanced its endeavors to voice their grievances and always boosted their spirits and encouraged them to advocate the cause of the under privileged.
He added that Shamrock helped them to create awareness, identify the impediments and suggest remedies.
The annual conferences motivated the sector stakeholders to put SME promotion and development on fast track.
The sector is grateful to Shamrock for highlighting MSME issues at every single conference for the last decade.
UNISAME delegates will highlight the issues facing the micro to medium sized entrepreneurs namely the access to finance, the high cost of finance for the micro sector, the need for pay as you earn schemes at affordable finance, the tough requirement of collateral of immovable property that too in selected areas only which the MSME cannot provide.
Whilst finance is now become affordable for the SMEs because of the efforts of the SBP, the access to finance issue remains as commercial banks are not comfortable in financing without collateral. Although the SBP has introduced credit insurance and undertakes almost 40% of risk and in some places almost 60% but the banks need full cover. The private sector insurance companies are not inclined to indemnify for third world countries and banks of buyers who have low rating. The private insurance companies also charge heavy premium which is more than the profit earned by the exporters.
The commercial banks also demand high margin on letter of credits and even bank transactions cost is high.
UNISAME will urge the SBP at the MSME forum to have a specific bank for MSMEs and also to expedite the matter of Exim Bank to make it functional.
UNISAME delegates will use the platform to remind the government that SME promotion is no charity, it is the responsibility of the state and will reiterate the need for SME Development Fund, the strengthening of SMEDA to make it efficient and competent and strong to out reach the micro to medium sized entrepreneurs, They will also stress the need for increasing finance to the agricultural sector and to free them from the clutches of the middlemen popularly called the arthis.
Other requirements of the sector are SME chamber of commerce, SME technical institute to fill the technological gap and arrange for technology transfer.
The Union representatives will also remind the policy makers that the SME policy 2007 has not been implemented in full and the promises made therein like setting up of venture capital fund, SME ombudsman and industrial estates to give land at concession and easy payment terms to SMEs have remained unfulfilled.
Posted in: Press Releases