The working committee on finance formed by the National Small and Medium Enterprises Development Task Force (NSDTF) has proposed to establish a Venture Capital Fund, small- and medium-sized enterprise (SME) Credit Guarantee Institution and SME Credit Insurance programme for the development of SMEs.
The committee met yesterday at the Small and Medium Enterprise Development Authority (SMEDA) head office to finalise proposals for SME financing with Shaukat Tarin, chairman Pakistan Banks Association in the chair.
The venture capital fund would help SMEs start business whereas, the credit guarantee institution is necessary because small enterprises are unable to provide collateral to the banks and credit insurance will provide protection to the banks.
