The National Bank of Pakistan (NBP) has found great potential for the growth of the small-and medium-sized enterprise (SME) sector in Pakistan and will increase its lending SMEs from the present level of Rs 22 billion to Rs 70 billion (US$1.2bn) in the next three years, said NBP president Ali Raza, speaking at the signing of the memorandum of understanding (MoU) with the Small and Medium Enterprises Development Authority (Smeda) here on 1 December.
Raza pointed out that the NBP has revamped its credit system for SMEs and introduced credit scoring for lending purposes.
"We have signed agreements with five credit information bureaux in this regard," he said, adding that cash flows-based lending was the best way of financing SMEs as collateral-based lending had created huge bad loans in the past.
