ISLAMABAD: Minister of State for Information and Broadcasting Farrukh Habib on Tuesday said Prime Minister Imran Khan was determined to promote small and medium enterprises to improve the economic indicators which he observed were already on a positive trajectory.
In a tweet, he said SMEs were an important component of the economy and their promotion would strengthen the economy and help create employment opportunities.
The State Bank of Pakistan has launched a scheme to provide collateral-free financing of up to Rs10 million to these entities.
The government would provide risk coverage of 40 to 60 percent to selected banks against losses depending on the size of the loan, 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 the Small and Medium Enterprise Development Agency, these entities were believed to contribute 40 percent to the Gross Domestic Product and 25 percent to exports of emerging economies.
