LA­HORE

The Pak Banker - - FRONT PAGE -

State Bank of Pak­istan (SBP) has drafted a Se­cure Trans­ac­tion Law in con­sul­ta­tion with in­ter­na­tional fi­nan­cial agen­cies to re­solve SMEs col­lat­eral re­lated is­sues and the draft will be sent to Fi­nance Min­istry that will put it be­fore the Na­tional Assem­bly for ap­proval. And com­mer­cial banks are re­quired to make out of the box lend­ing to SMEs as con­ven­tional meth­ods of fi­nanc­ing SMEs have not showed en­cour­ag­ing re­sults.

This was stated by State Bank of Pak­istan SMEs Ex­ec­u­tive Di­rec­tor Syed Su­mar Has­nain while ex­clu­sively talk­ing to Daily The Pak Banker on the side­line of a Pak­istan SME Fo­rum 2015 here on Tues­day. He said that the com­mer­cial bank will be able to con­fi­dently lend to the SMEs once the Se­cure Trans­ac­tion law ap­proved. "The Banks will register move­able as­sets of the SMEs as­sets col­lat­eral which will be check on the dou­ble use of an as­set as col­lat­eral. The draft has been sent to the Fi­nance min­istry which has raised a few quires. Af­ter the process is com­pleted the law will be pre­sented in Par­lia­ment for its ap­proval," he added.

"SME lend­ing is a dif­fer­ent model and it can­not be suc­cess­ful with the use of con­ven­tional meth­ods. We need SME bankers for SME lend­ing as SME lend­ing is not cor­po­rate lend­ing model," he said. Cur­rently the SMEs that have a good

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