SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Officially Launched

SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Update: Tariq Bajwa, Governor, State Bank of Pakistan (SBP) on Friday 25th August 2017 launched SBP Women Entrepreneurs Refinance Credit Guarantee Scheme in Undeserved Areas at a ceremony in Quetta.

The SBP governor said earmarking 20 percent funds in the SBP Women Entrepreneurs Refinance Credit Guarantee Scheme for Balochistan’s women primarily intended to provide them opportunities for establishing new business and extending the old ones in far-flung areas of the province.

The governor informed the audience that it is for the first time in our history that a SBP Women Entrepreneurs Refinance Credit Guarantee Scheme with 0 percent refinance rate and 60 percent risk coverage for small businesses run by women entrepreneurs has been rolled out.
Governor SBP said:

“This SBP Women Entrepreneurs Refinance Credit Guarantee Scheme is an affirmative action by the State Bank to encourage flow of funds to small enterprises run by women of underserved areas of Pakistan. The scheme earmarks, at least 20 percent of funds for Balochistan.”

Balochistan Assembly Speaker Rahila Hamid Khan Durrani, SBP Deputy Governor Jameel Ahmed Khan, Zubair Tufail and high officials of government and private banks were also present on the occasion.

It is pertinent to mention here that this SBP Women Entrepreneurs Refinance Credit Guarantee Scheme is for women entrepreneurs in undeserved areas of the country for setting up of new businesses or expansion of existing ones.

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The central bank will provide refinance to banks at zero percent. Maximum financing amount is Rs 1.5 million. And maximum financing period is 5 years with grace period of up to 6 months. End user rate is 5 percent which is locked in for financing period. 60 percent risk coverage is available against outstanding principal.

The SBP governor restated his commitment towards sustainable and inclusive economic growth across Pakistan. The governor went onto say that SMES are playing a role of backbone in economy, but unluckily its ratio was touching 8 percent while this remained less than 1 percent in Balochistan; whereas, the part of women was next to nothing.

Bajwa directed bank heads to make more efforts for staggering the SMEs to 15-16 percent and for which all stakeholders would have to render key role. Recounting a reference from a survey conducted in 2015, he said:

“Women hold 11 percent accounts in sum total bank accounts of Pakistan and they were now making strenuous efforts to enlarge women accounts up to 25 percent.”

On the launching ceremony of SBP Women Entrepreneurs Refinance Credit Guarantee Scheme, Rahila said that women in Balochistan were second to none in terms of talent. She appreciated the SBP initiative for women entrepreneurs of backward area and particularly of Balochistan.

The speaker was hopeful that such attractive financing schemes would help poor women to overcome their financial problems and hence bring prosperity to the entire province.

Earlier in the day, Governor SBP called on Mr. Muhammad Khan Achakzai, Governor Balochistan. Governor SBP apprised Mr. Achakzai of SBP’s special focus on agriculture, SMEs and low cost housing in all underserved areas of Pakistan particularly Balochistan.

Governor Balochistan thanked Governor SBP for his efforts in promoting access to finance for the underserved and the under banked. The Governor SBP also met with members of Quetta Chamber of Commerce and Industry (QCCI).

The office holders of QCCI while welcoming Governor SBP apprised him of issues being faced by the business community of Quetta. The Governor SBP assured members of QCCI of his help in resolving their genuine grievances.

Source: Mehran Post