UBL, IFC sign advisory services agreement

KARACHI: International Finance Corporation (IFC), a member of the World Bank Group, recently signed an advisory services agreement with United Bank Limited (UBL) to help boost access to finance for small and medium enterprises (SMEs) and spur economic growth. SMEs play a vital role in Pakistan's economy, but many still struggle to access funding. Commercial bank lending to SMEs in Pakistan is currently less than 6 percent of total bank lending, which is significantly lower than neighbouring countries.

This agreement is part of ongoing efforts by the World Bank Group to boost financial inclusion globally and achieve universal financial access by 2020. The agreement will help UBL design a new SME banking business model and supply chain finance programme. This will further assist the bank strengthen its capacity in the sector and offer better financial services and new products to smaller enterprises - a critically underserved sector in the economy.

United Bank Limited Retail Banking Group Executive Zia Ijaz said, "UBL leads the banking and financial services industry in Pakistan.

Given the bank's extensive footprint across Pakistan, UBL is perfectly placed to service the SME segment. "IFC will leverage its global SME knowledge and local market insights to help UBL adopt international best practices in SME banking," said Financial Institutions Group Manager Xavier Reille. "As a leading commercial bank, UBL is ideally positioned to tap into the SME market and help provide them with the vital financing they need to grow and create jobs."