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KARACHI, Sept 20: The SME Business Support Fund will provide matching grant to 1,200 small and medium sized units towards consultancy, marketing, packaging and improvement in quality. The pilot project is being under taken with the assistance of the Asian Development Bank with a funding of Rs400 million for three years.
Once the project is successful its ambit will be expanded, as the government is keen to assist SMEs in order to enable them to grow and develop at a faster pace.
At present there are around 350,000 SMEs throughout the country, but SME Business Support Fund (BSF) created with the support of the ADB plans to provide matching grant to 1,000 to 1,200 units towards their business development services (BDS).
Speaking at a recent meeting organised by the Union of Small and Medium Enterprises (Unisame), Business Support Fund chief operating officer Ali Sarfraz said the BSF would arrange for a fund of up to 50 per cent of the total agreed cost, with a maximum grant to the tune of Rs1.8 million.
He said all those SMEs would be eligible to get grant from the BSF that employed up to 250 staff or with a maximum turnover of Rs300 million and having an operating history of at least three years. BSE, Mr Sarfraz said, could support individual enterprises and a group of enterprises.
The BSF is already being given to several SME units in Lahore, Karachi, Peshawar and Faisalabad in the areas of garment sector, marble and granite, surgical and sports goods, etc.
“Once this pilot project of Rs400 million for a period of three years was successful, the ADB will provide larger grant and the BSF programme would be expanded to many other areas,” he maintained.
He asked Unisame to assist the BSF in approaching genuine SMEs which needed funds in order to improve their production, quality, packaging, standard or even technology transfer or upgradation.
Unisame President Zulfikar Thaver suggested that the BSF should induct a director on its board from SME bodies so that a provider guidance and information could be received.
