1. Meeting with SME Heads of Banks
Mr. Imran Ahmad
Additional Director
Infrastructure, Housing & SME Finance Department State Bank of Pakistan
February 19, 2018

2. Economic Importance of Sindh
Economic Potential
Handicrafts
Agriculture & Livestock
Natural Gas
Dry Dates
Tourism
Banks can help explore the potential opportunities of industrial development in agriculture, handicrafts and other sectors of local economy.

3. Total Branch Network in Sindh
Private Sector Financing of Rs. 1,576 billion*
Bank Branches 2713
Bank Booths 113
Islamic Branches 682
* Source: SDWHD, SBP

4. Trends in SME Finance

5. Trends in SME Finance

6. Bank wise Position as of Dec-2017
S. No.
Bank/DFI Name 1
Habib Bank Limited 10
Summit Bank Limited 19
Albaraka Islamic Bank 2
National Bank of Pakistan 11
Faysal Bank Limited 20
Standard Chartered Bank Pakistan Limited 3
The Bank of Punjab 12
Habibmetro Bank Limited 21
Bank Islami Pakistan Limited 4
Bank Alfalah Limited 13
Meezan Bank Limited 22
First Women Bank Limited 5
JS Bank Limited 14
Soneri Bank Limited 23
Sindh Bank Limited 6
Allied Bank Limited 15
Silk Bank Limited 24
Samba Bank Limited 7
Bank Al-Habib Limited 16
Askari Bank Limited 25
MCB Islamic Bank Limited 8
United Bank Limited 17
Dubai Islamic Bank Limited 26
Punjab Provincial Co-Operative Bank Limited 9
MCB Bank Limited 18
The Bank of Khyber

7. Outstanding SME Financing 28.4 % of Total SME financing
SME Financing in Sindh
Sector
Gender
Outstanding SME Financing
Sindh
Number of borrowers
Amount
(in Billion)
Manufacturing
Male
12,884
3,489
60.265
Female
392
5.761 95
2.049
Trading
28,666
5,732
37.009
833
3.627
232
1.479
Services
80,074
4,702
25.964
5,022
5.802
335
1.088
Total
121,624
13,923
6,247
15.190
662
4.616
Sub-Total
127,871
14,585
Grand Total
173,872
28.4 % of Total SME financing

8. Small Enterprises Financing
Small Enterprise Financing Outstanding
Sector
Gender of Borrower
Total Finance Outstanding to Small Enterprises
Sindh
Number of borrowers
Amount
(in Billion)
Manufacturing
Male
5,241
22.686
1,211
5.957
Female
146
0.508 39
0.107
Trading
21,859
62.825
4,306
13.999
636
1.692
175
0.461
Services
76,557
58.762
3,719
8.251
4,886
3.844
295
0.591
Total
103,657
9,236
28.208
5,668
6.044
509
1.160
Grand Total
109,325
9,745
29.367
19.5 % of Total SE Financing

9. Medium Enterprise Financing
Sector
Gender of Borrower
Total Finance Outstanding to Medium Enterprises
Sindh
Number
Amount
Manufacturing
Male
7,643
2,278
54.308
Female
246
5.253 56
1.943
Trading
6,807
81.160
1,426
23.010
197
1.935 57
1.017
Services
3,517
51.703
983
17.713
136
1.958 40
0.496
Total
17,967
4,687
95.030
579
9.146
153
3.456
Grand Total
18,546
4,840
98.486
34 % of Total ME Financing

10. SME Finance Targets for Sindh
Region-wise targets’ distribution data has also been obtained.
Last year, banks were themselves decided to allocate targets to various regions.
SBP will be allocating region-wise targets in future.
As per data received in June-2017, 27% of target was allocated by banks to Sindh.
As per new province-wise targets, 28% has been allocated to Sindh for 2018.

11. Region wise SME HR Status of Banks
Province
Regions
Total HR
Punjab
Lahore
1545
Multan
Bahawalpur
Rawalpindi
Gujranwala
Sialkot
Faisalabad
Others , mentioend below
Vehari
Rahim Yar Khan
Jhelum
Sahiwal
Sargodha
Gujrat
Sindh
Karachi
831
Hyderabad
Sukkur
Others
Balochistan
Quetta 81
Gawadar
KPK
Peshawar
240
D.I Khan
Abottabad
Kohat
Mardan
Hattar
others
Capital
Islamabad
124
AJK
Muzaffarabad 75
Gilgat Biltistan 2
Region wise SME HR Status of Banks

12. Position of SME Related HR in Sindh

13. Policy for promotion of SME
Current Status
SME share is 8.7% of private sector credit
No. of borrowers is 165,000
Benchmarks
Increase SME share to 17% of private sector credit
Increase no. of SME borrowers to 500,000

14. Policy for Promotion of SME Finance
Pillar # 1 Improving Regulatory Framework
Pillar # 2: Upscaling through Microfinance Banks
Pillar # 3: Risk Mitigation Strategy
Pillar # 4: Simplified Procedures for SME Finance
Pillar # 5: Program based Lending & Value Chain Financing
Pillar # 6: Capacity Building & Awareness Creation
Pillar # 7: Handholding of SMEs-Non Financial Advisory Service
Pillar # 8: Leveraging Technology to Promote SME Financing
Pillar # 9: Simplifying Taxation Regime for SMEs

15. SBP’s Interventions to Promote SME Finance
Legal & Regulatory Infrastructure
Legal & Regulatory Infrastructure
Capacity Building of Banks & Others
Separate Prudential Regulations (2003)
Separate PRs of SEs and MEs (2013)
Secured Transaction Act (2016)
SME Target Regime
Establishing E-Registry
SBP Refinance and Credit Guarantee Schemes
Customized provincial schemes
Islamic SME Financing
SME Cluster Surveys
Non Financial Advisory Services
Bankers
Collaboration with NIBAF, IBP, academia
SMEs
Financial Awareness, Handholding, coordination with SMEDA, TDAP, other entities (associations, trade organizations, TUSDEC, PGJDC, OICCI, PBIF)

16. Future Target Allocation
 Projection
2017
2018
2019
2020
Total Private Sector Financing
4,644
5,038
5,390
5,768
Outstanding SME Financing
515
623
870
1,173
Islamic Banking 65 86
125
218
Development Finance Institutions
2.8
3.6
4.5
6.8

17. SBP Schemes Export Finance Scheme
Financing Facility for Modernization of SMEs
Financing Scheme for Renewable Energy
Financing Facility for Storage of Agricultural Produce
Refinance and Credit Guarantee Scheme for Women Entrepreneurs in Underserved Areas

18. Outstanding Financing under SBP Schemes
(Rs in Million)
SBP Schemes
Total
Sindh
Export Finance Scheme (EFS)
    300,115
140,981
Islamic Export Refinance Scheme (IERS)
      46,390
35,179
EFS -SMEs
10,896
3,212
Long Term Financing Facilities
 106,638
57,257 
Long Term Financing Facility (LTFF) for Plant & Machinery
       98,532
50,597
Financing Facility for Storage of Agricultural Produce (FFSAP)
         1,316
575
Refinance Facility for Modernization of SMEs ^
            41 29
Scheme for Financing Power Plants Using Renewable Energy
         6,749
6,056
* As of , ^ As of

19. Credit Guarantee Scheme
SBP launched CGS for Small and Rural Enterprises in March 2010
Risk coverage of up to 60% against credit losses of PFIs’ lending to small, micro and rural enterprises
Scheme aims to encourage lending towards fresh and collateral deficient borrowers
In addition to this, risk coverage of 60% against all loans extended to women borrowers, start-up businesses and small, rural and micro enterprises operating in the under-served areas of the country

20. Credit Guarantee Scheme
(as on September 30, 2017)
Province
Sum of Amount Sanctioned
Azad Jammu and Kashmir
176,510,000
Baluchistan
84,175,000
Federal Capital
140,131,835
Federally Administered Tribal Areas
5,000,000
Gilgit -Baltistan
2,000,000
Khyber-Pakhtunkhwa
1,330,852,610
Punjab
16,286,033,407
Sindh
4,723,187,778
Grand Total
22,747,890,630

21. Non-Financial Advisory Services (NFAS)
Non-Financial Advisory Services are business support services, enterprise development or value added services which compliment the financial offerings of a bank
NFS can facilitate financial inclusion and help reach new target segments such as MSMEs, farmers, women and start-ups

22. Promotion of SME Financing
Following efforts have been made to promote SME financing in Sindh:
Governor SBP’s meeting with the banks and business chambers/ associations of Sukkur/ Larkana Region
Awareness program for the banks in Sukkur on BMR Scheme
Meeting of SBP officials with the regional managers of banks and Sindh Balochistan Rice Millers Association at Larkana
Meeting of SMEDA, SBP and banks to increase interaction
SME Focus Group meetings
Meetings with different associations and government departments

23. What is needed? It is highly needed to:
Enhance access to credit in Sindh
Increase interaction among banks, SMEDA, associations, clients and other stake-holders
Depute SME specific human resources
Delegate credit approval powers
Uptake in Technical Assistance component of CGS
Non-Financial Advisory Services
Create awareness on SBP schemes and provide necessary knowledge (on documentation)
Improve utilization of SBP schemes in Sindh (BMR, SEDF)

24. Thank You